FAAR vs HUSV
FAAR vs HUSV
First Trust Alternative Absolute Return Strategy ETF vs First Trust Horizon Managed Volatility Domestic ETF
Quick Verdict
HUSV has a lower expense ratio. FAAR delivered stronger 1-year returns. HUSV offers more diversification with 101 holdings.
Side-by-Side Comparison
| Metric | FAAR | HUSV | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.70% | |
| AUM | $191M | $74M | |
| Dividend Yield | 9.19% | 1.37% | |
| Holdings | 6 | 101 | |
| YTD Return | +13.94% | +8.58% | |
| 1Y Return | +19.26% | +5.89% | |
| 3Y Return (annualized) | +8.78% | +9.95% | |
| 5Y Return (annualized) | +7.33% | +6.22% | |
| Volatility (annualized) | 9.2% | 13.2% | |
| Max Drawdown | -18.8% | -35.7% | |
| Fund Family | First Trust Portfolios (US) | First Trust Portfolios (US) | |
| Category | Commodity | Equity | |
| Inception | May 18, 2016 | Aug 24, 2016 |
FAAR vs HUSV Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and First Trust Horizon Managed Volatility Domestic ETF (HUSV) is a ETF from First Trust Portfolios (US). Over the past year FAAR returned +19.26% while HUSV returned +5.89%. Year to date, FAAR is up 13.94% versus a gain of 8.58% for HUSV.
Over three years, FAAR compounded at +8.78% per year against +9.95% for HUSV; over five years the annualized figures are +7.33% and +6.22% respectively. Across the full 10-year window we track, HUSV has the edge at +8.52% annualized vs +3.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HUSV has been the more volatile fund, with annualized monthly volatility of 13.2% compared with 9.2% for FAAR. 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 -35.7% for HUSV. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while HUSV charges 0.70%. On a $10,000 position that is $97 vs $70 annually, a gap of $27 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 1.37% for HUSV.
Holdings Overlap
FAAR and HUSV share 0 holdings out of 102 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAAR or HUSV?
FAAR has an expense ratio of 0.97% while HUSV charges 0.70%. HUSV is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, FAAR or HUSV?
Over the past year FAAR returned +19.26% vs +5.89% for HUSV, so FAAR leads on 1-year performance. Over the longest common window we track (10 years), FAAR annualized +3.32% vs +8.52% for HUSV. Past performance does not guarantee future results.
Which is riskier, FAAR or HUSV?
HUSV has been the more volatile fund at 13.2% annualized versus 9.2% for FAAR. Worst drawdown: FAAR -18.8% vs HUSV -35.7%.
Should I hold both FAAR and HUSV?
FAAR and HUSV have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and HUSV?
FAAR and HUSV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, FAAR or HUSV?
FAAR yields 9.19% while HUSV yields 1.37%, so FAAR currently pays the higher dividend yield.
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