FAAR vs NBCM
First Trust Alternative Absolute Return Strategy ETF vs Neuberger Berman Commodity Strategy ETF
Which is better, FAAR or NBCM?
NBCM has been ahead.
NBCM has a lower expense ratio. NBCM led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FAAR | NBCM |
|---|---|---|
| Expense Ratio | 0.98% | 0.65%Best |
| AUM | $230M | $528M |
| Dividend Yield | 9.96% | 6.22% |
| Holdings | 6 | 154 |
| YTD Return | +22.23% | +40.10%Best |
| 1Y Return | +19.11% | +44.58%Best |
| 3Y Return (annualized) | +11.49% | +19.09%Best |
| 5Y Return (annualized) | +7.71% | - |
| Volatility (annualized) | 11.1%Best | 13.4% |
| Max Drawdown | -11.5%Best | -14.8% |
| $10,000 over 4 years | $13,246 | $17,369Best |
| Fund Family | First Trust Portfolios (US) | Neuberger Berman |
| Category | Commodity | Commodity |
| Style | Commodities | Commodities |
| Inception | May 18, 2016 | Oct 24, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Oct 24, 2022 to Oct 12, 2026 (4 years).
FAAR vs NBCM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
FAAR vs NBCM Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is an ETF from First Trust Portfolios (US) and Neuberger Berman Commodity Strategy ETF (NBCM) is an ETF from Neuberger Berman. Over the past year FAAR returned +19.11% while NBCM returned +44.58%. Year to date, FAAR is up 22.23% versus a gain of 40.10% for NBCM.
Over three years, FAAR compounded at +11.49% per year against +19.09% for NBCM. Across the full 4-year window we track, NBCM has the edge at +14.80% annualized vs +7.28%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NBCM has been the more volatile fund, with annualized monthly volatility of 13.4% compared with 11.1% 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 -11.5% for FAAR and -14.8% for NBCM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FAAR charges 0.98% per year while NBCM charges 0.65%. On a $10,000 position that is $98 vs $65 annually, a gap of $33 per year that compounds over a long holding period. On income, FAAR currently yields 9.96% against 6.22% for NBCM.
You are not choosing between two funds in isolation.
Whichever of FAAR and NBCM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FAAR or NBCM?
FAAR has an expense ratio of 0.98% while NBCM charges 0.65%. NBCM is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, FAAR or NBCM?
Over the past year FAAR returned +19.11% vs +44.58% for NBCM, so NBCM leads on 1-year performance. Over the longest common window we track (4 years), FAAR annualized +7.28% vs +14.80% for NBCM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAAR or NBCM?
NBCM has been the more volatile fund at 13.4% annualized versus 11.1% for FAAR. Worst drawdown: FAAR -11.5% vs NBCM -14.8%.
Should I hold both FAAR and NBCM?
FAAR and NBCM have a monthly-return correlation of 0.57, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FAAR or NBCM?
FAAR yields 9.96% while NBCM yields 6.22%, so FAAR currently pays the higher dividend yield.
Is NBCM better than FAAR?
NBCM has a lower expense ratio. NBCM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.