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FAAR vs USE

First Trust Alternative Absolute Return Strategy ETF vs USCF Energy Commodity Strategy Absolute Return Fund

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

USE

USCF Energy Commodity Strategy Absolute Return Fund

Annual cost

0.79%

Fund size

$2M

Key differences

Both FAAR and USE are alternative ETFs. FAAR charges 0.98% a year and USE 0.79%. The main difference: FAAR follows a long short strategy; USE uses multi strategy.

  • FAAR follows a long short strategy; USE uses multi strategy.
  • USE costs 0.19% less per year.
  • FAAR is much larger than USE. Larger funds are usually more liquid and less likely to close.
  • Over the last three years, USE has delivered higher annualized returns.
  • FAAR has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

FAARUSE
Annual cost (TER)0.98%0.79%
Fund size (AUM)$176M$2M
Since20162023
Dividend yield9.19%2.21%
Asset classalternativealternative
Regionnorth america
Strategylong shortmulti strategy
CAGR 1Y+38.6%+34.1%
CAGR 3Y+10.8%+17.5%
CAGR 5Y+8.0%N/A
Sharpe 3Y0.640.60
Volatility 1Y13.55%31.73%
Max drawdown-18.03%-26.24%

Similar to FAAR and USE