FAAR vs IZRL
First Trust Alternative Absolute Return Strategy ETF vs ARK Israel Innovative Technology ETF
Quick Verdict
IZRL has a lower expense ratio. FAAR delivered stronger 1-year returns. IZRL offers more diversification with 66 holdings.
Side-by-Side Comparison
| Metric | FAAR | IZRL | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.49% | |
| AUM | $191M | $142M | |
| Dividend Yield | 9.19% | 2.55% | |
| Holdings | 6 | 63 | |
| YTD Return | +13.94% | -0.27% | |
| 1Y Return | +19.26% | +13.01% | |
| 3Y Return (annualized) | +8.78% | +15.44% | |
| 5Y Return (annualized) | +7.33% | +0.04% | |
| Volatility (annualized) | 9.2% | 23.5% | |
| Max Drawdown | -18.8% | -60.0% | |
| Fund Family | First Trust Portfolios (US) | Ark Invest | |
| Category | Commodity | Equity | |
| Inception | May 18, 2016 | Dec 4, 2017 |
FAAR vs IZRL Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and ARK Israel Innovative Technology ETF (IZRL) is a ETF from Ark Invest. Over the past year FAAR returned +19.26% while IZRL returned +13.01%. Year to date, FAAR is up 13.94% versus a loss of 0.27% for IZRL.
Over three years, FAAR compounded at +8.78% per year against +15.44% for IZRL; over five years the annualized figures are +7.33% and +0.04% respectively. Across the full 9-year window we track, IZRL has the edge at +5.46% annualized vs +3.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IZRL has been the more volatile fund, with annualized monthly volatility of 23.5% 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 -60.0% for IZRL. 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while IZRL charges 0.49%. On a $10,000 position that is $97 vs $49 annually, a gap of $48 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 2.55% for IZRL.
Holdings Overlap
FAAR and IZRL share 0 holdings out of 67 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 IZRL?
FAAR has an expense ratio of 0.97% while IZRL charges 0.49%. IZRL is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, FAAR or IZRL?
Over the past year FAAR returned +19.26% vs +13.01% for IZRL, so FAAR leads on 1-year performance. Over the longest common window we track (9 years), FAAR annualized +3.32% vs +5.46% for IZRL. Past performance does not guarantee future results.
Which is riskier, FAAR or IZRL?
IZRL has been the more volatile fund at 23.5% annualized versus 9.2% for FAAR. Worst drawdown: FAAR -18.8% vs IZRL -60.0%.
Should I hold both FAAR and IZRL?
FAAR and IZRL have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and IZRL?
FAAR and IZRL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 67 unique securities.
Which pays a higher dividend, FAAR or IZRL?
FAAR yields 9.19% while IZRL yields 2.55%, so FAAR currently pays the higher dividend yield.
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