FAAR vs GTOS
First Trust Alternative Absolute Return Strategy ETF vs Invesco Short Duration Total Return Bond ETF
Quick Verdict
GTOS has a lower expense ratio. FAAR delivered stronger 1-year returns. GTOS offers more diversification with 294 holdings.
Side-by-Side Comparison
| Metric | FAAR | GTOS | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.30% | |
| AUM | $191M | $122M | |
| Dividend Yield | 9.19% | 4.55% | |
| Holdings | 6 | 1,047 | |
| YTD Return | +15.59% | -0.81% | |
| 1Y Return | +20.13% | +1.12% | |
| 3Y Return (annualized) | +9.10% | +4.64% | |
| 5Y Return (annualized) | +7.35% | - | |
| Volatility (annualized) | 9.1% | 1.9% | |
| Max Drawdown | -18.8% | -1.8% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Commodity | Fixed Income | |
| Inception | May 18, 2016 | Dec 9, 2022 |
FAAR vs GTOS Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and Invesco Short Duration Total Return Bond ETF (GTOS) is a ETF from Invesco (US). Over the past year FAAR returned +20.13% while GTOS returned +1.12%. Year to date, FAAR is up 15.59% versus a loss of 0.81% for GTOS.
Over three years, FAAR compounded at +9.10% per year against +4.64% for GTOS. Across the full 4-year window we track, GTOS has the edge at +4.31% annualized vs +3.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAAR has been the more volatile fund, with annualized monthly volatility of 9.1% compared with 1.9% for GTOS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -18.8% for FAAR and -1.8% for GTOS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while GTOS charges 0.30%. On a $10,000 position that is $97 vs $30 annually, a gap of $67 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 4.55% for GTOS.
Holdings Overlap
FAAR and GTOS share 1 holdings out of 294 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAAR | Weight in GTOS | Difference |
|---|---|---|---|
| B 0 05/14/26 | 8.96% | 0.59% | 8.37% |
Frequently Asked Questions
Which is cheaper, FAAR or GTOS?
FAAR has an expense ratio of 0.97% while GTOS charges 0.30%. GTOS is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, FAAR or GTOS?
Over the past year FAAR returned +20.13% vs +1.12% for GTOS, so FAAR leads on 1-year performance. Over the longest common window we track (4 years), FAAR annualized +3.46% vs +4.31% for GTOS. Past performance does not guarantee future results.
Which is riskier, FAAR or GTOS?
FAAR has been the more volatile fund at 9.1% annualized versus 1.9% for GTOS. Worst drawdown: FAAR -18.8% vs GTOS -1.8%.
Should I hold both FAAR and GTOS?
FAAR and GTOS have a monthly-return correlation of -0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and GTOS?
FAAR and GTOS share 1 common holdings with a 0.6% weight overlap. Combined, they hold 294 unique securities.
Which pays a higher dividend, FAAR or GTOS?
FAAR yields 9.19% while GTOS yields 4.55%, so FAAR currently pays the higher dividend yield.
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