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FTBI vs FAAR

First Trust Balanced Income ETF vs First Trust Alternative Absolute Return Strategy ETF

FTBI

First Trust Balanced Income ETF

Annual cost

0.97%

Fund size

$20M

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

Key differences

FTBI is a mixed asset ETF, while FAAR is an alternative ETF. FTBI charges 0.97% a year and FAAR 0.98%.

  • FTBI is a mixed asset fund, while FAAR is an alternative fund. They carry different risk/return profiles.
  • FTBI follows a index tracking strategy; FAAR uses long short.
  • FTBI covers global markets; FAAR covers North America.
  • FAAR is much larger than FTBI. Larger funds are usually more liquid and less likely to close.
  • FAAR has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

FTBIFAAR
Annual cost (TER)0.97%0.98%
Fund size (AUM)$20M$176M
Since20252016
Dividend yield7.31%9.19%
Asset classmixed assetalternative
Regionglobalnorth america
Strategyindex trackinglong short
CAGR 1Y+15.8%+33.2%
CAGR 3YN/A+11.1%
CAGR 5YN/A+7.4%
Sharpe 3YN/A0.67
Volatility 1Y7.46%13.49%
Max drawdown-5.34%-18.03%

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

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