FAAR vs PATN
First Trust Alternative Absolute Return Strategy ETF vs Pacer Nasdaq International Patent Leaders ETF
Quick Verdict
PATN has a lower expense ratio. PATN delivered stronger 1-year returns. PATN offers more diversification with 101 holdings.
Side-by-Side Comparison
| Metric | FAAR | PATN | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.65% | |
| AUM | $191M | $194M | |
| Dividend Yield | 9.19% | 1.59% | |
| Holdings | 6 | 106 | |
| YTD Return | +15.54% | +28.06% | |
| 1Y Return | +20.20% | +50.91% | |
| 3Y Return (annualized) | +9.05% | - | |
| 5Y Return (annualized) | +7.41% | - | |
| Volatility (annualized) | 9.1% | 21.0% | |
| Max Drawdown | -18.8% | -16.8% | |
| Fund Family | First Trust Portfolios (US) | Pacer ETFs | |
| Category | Commodity | Equity | |
| Inception | May 18, 2016 | Sep 16, 2024 |
FAAR vs PATN Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and Pacer Nasdaq International Patent Leaders ETF (PATN) is a ETF from Pacer ETFs. Over the past year FAAR returned +20.20% while PATN returned +50.91%. Year to date, FAAR is up 15.54% versus a gain of 28.06% for PATN.
Risk: Volatility and Drawdowns
PATN has been the more volatile fund, with annualized monthly volatility of 21.0% compared with 9.1% 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 -18.8% for FAAR and -16.8% for PATN. 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 -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while PATN charges 0.65%. On a $10,000 position that is $97 vs $65 annually, a gap of $32 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 1.59% for PATN.
Holdings Overlap
FAAR and PATN 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 PATN?
FAAR has an expense ratio of 0.97% while PATN charges 0.65%. PATN is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FAAR or PATN?
Over the past year FAAR returned +20.20% vs +50.91% for PATN, so PATN leads on 1-year performance. Over the longest common window we track (2 years), FAAR annualized +3.46% vs +37.04% for PATN. Past performance does not guarantee future results.
Which is riskier, FAAR or PATN?
PATN has been the more volatile fund at 21.0% annualized versus 9.1% for FAAR. Worst drawdown: FAAR -18.8% vs PATN -16.8%.
Should I hold both FAAR and PATN?
FAAR and PATN have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and PATN?
FAAR and PATN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, FAAR or PATN?
FAAR yields 9.19% while PATN yields 1.59%, so FAAR currently pays the higher dividend yield.
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