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FAAR vs RLY

First Trust Alternative Absolute Return Strategy ETF vs State Street Multi-Asset Real Return ETF

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

RLY

State Street Multi-Asset Real Return ETF

Annual cost

0.50%

Fund size

$1.2B

Key differences

FAAR is an alternative ETF, while RLY is a fixed income ETF. FAAR charges 0.98% a year and RLY 0.50%.

  • FAAR is an alternative fund, while RLY is a fixed income fund. They carry different risk/return profiles.
  • FAAR follows a long short strategy; RLY uses active selection.
  • RLY costs 0.48% less per year.
  • RLY is much larger than FAAR. Larger funds are usually more liquid and less likely to close.
  • Over the last three years, RLY has delivered higher annualized returns.

Side-by-side comparison

FAARRLY
Annual cost (TER)0.98%0.50%
Fund size (AUM)$176M$1.2B
Since20162012
Dividend yield9.19%2.89%
Asset classalternativefixed income
Regionnorth america
Strategylong shortactive selection
CAGR 1Y+33.2%+28.0%
CAGR 3Y+11.1%+14.0%
CAGR 5Y+7.4%+10.0%
Sharpe 3Y0.670.90
Volatility 1Y13.49%10.38%
Max drawdown-18.03%-34.17%

Beyond the comparison: Beacon helps you build, track, and project a portfolio with the ETFs you pick.

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