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RLY vs FAAR

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

RLY

State Street Multi-Asset Real Return ETF

Annual cost

0.50%

Fund size

$1.2B

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

Key differences

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

  • RLY is a fixed income fund, while FAAR is an alternative fund. They carry different risk/return profiles.
  • RLY follows a active selection strategy; FAAR uses long short.
  • 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

RLYFAAR
Annual cost (TER)0.50%0.98%
Fund size (AUM)$1.2B$176M
Since20122016
Dividend yield2.89%9.19%
Asset classfixed incomealternative
Regionnorth america
Strategyactive selectionlong short
CAGR 1Y+28.0%+33.2%
CAGR 3Y+14.0%+11.1%
CAGR 5Y+10.0%+7.4%
Sharpe 3Y0.900.67
Volatility 1Y10.38%13.49%
Max drawdown-34.17%-18.03%

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

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