FAAR vs SAWS
FAAR vs SAWS
First Trust Alternative Absolute Return Strategy ETF vs AAM Sawgrass US Small Cap Quality Growth ETF
Quick Verdict
SAWS has a lower expense ratio. SAWS delivered stronger 1-year returns. SAWS offers more diversification with 71 holdings.
Side-by-Side Comparison
| Metric | FAAR | SAWS | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.55% | |
| AUM | $191M | $8M | |
| Dividend Yield | 9.19% | 0.02% | |
| Holdings | 6 | 72 | |
| YTD Return | +13.94% | +16.18% | |
| 1Y Return | +19.26% | +25.78% | |
| 3Y Return (annualized) | +8.78% | - | |
| 5Y Return (annualized) | +7.33% | - | |
| Volatility (annualized) | 9.2% | 18.3% | |
| Max Drawdown | -18.8% | -22.0% | |
| Fund Family | First Trust Portfolios (US) | Advisors Asset Management, Inc. | |
| Category | Commodity | Equity | |
| Inception | May 18, 2016 | Jul 30, 2024 |
FAAR vs SAWS Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and AAM Sawgrass US Small Cap Quality Growth ETF (SAWS) is a ETF from Advisors Asset Management, Inc.. Over the past year FAAR returned +19.26% while SAWS returned +25.78%. Year to date, FAAR is up 13.94% versus a gain of 16.18% for SAWS.
Risk: Volatility and Drawdowns
SAWS has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -22.0% for SAWS. 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 -0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while SAWS charges 0.55%. On a $10,000 position that is $97 vs $55 annually, a gap of $42 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 0.02% for SAWS.
Holdings Overlap
FAAR and SAWS share 0 holdings out of 72 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 SAWS?
FAAR has an expense ratio of 0.97% while SAWS charges 0.55%. SAWS is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FAAR or SAWS?
Over the past year FAAR returned +19.26% vs +25.78% for SAWS, so SAWS leads on 1-year performance. Over the longest common window we track (2 years), FAAR annualized +3.32% vs +13.57% for SAWS. Past performance does not guarantee future results.
Which is riskier, FAAR or SAWS?
SAWS has been the more volatile fund at 18.3% annualized versus 9.2% for FAAR. Worst drawdown: FAAR -18.8% vs SAWS -22.0%.
Should I hold both FAAR and SAWS?
FAAR and SAWS have a monthly-return correlation of -0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and SAWS?
FAAR and SAWS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 72 unique securities.
Which pays a higher dividend, FAAR or SAWS?
FAAR yields 9.19% while SAWS yields 0.02%, so FAAR currently pays the higher dividend yield.
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