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CTA vs FAAR

Simplify Managed Futures Strategy ETF vs First Trust Alternative Absolute Return Strategy ETF

CTA

Simplify Managed Futures Strategy ETF

Simplify Asset Management

Annual cost

0.75%

Fund size

$1.7B

FAAR

First Trust Alternative Absolute Return Strategy ETF

First Trust

Annual cost

0.98%

Fund size

$168M

Key differences

  • CTA costs 0.23% less per year.
  • CTA is significantly larger than FAAR — larger funds tend to be more liquid and less likely to close.
  • CTA follows a systematic alpha strategy; FAAR uses long short.
  • Over the last 3 years, CTA has delivered higher annualized returns.
  • FAAR has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

CTAFAAR
Annual cost (TER)0.75%0.98%
Fund size (AUM)$1.7B$168M
Since20222016
Dividend yield4.03%9.07%
Asset classalternativealternative
Regionnorth america
Strategysystematic alphalong short
CAGR 1Y+16.5%+41.1%
CAGR 3Y+13.4%+12.0%
CAGR 5YN/A+8.5%
Sharpe 3Y0.660.74
Volatility 1Y19.72%13.44%
Max drawdown-18.07%-18.03%

Green dot indicates the better value for that metric. Performance data is historical and does not predict future results.

Similar to CTA and FAAR