First Trust Alternative Absolute Return… (FAAR) Performance
FAAR total return
Distributions reinvested · as of Oct 23, 2026- YTD
- +22.4% since Dec 31, 2025
- 1 year
- +18.6% total return
- 5 years
- +7.2% a year
- 10 years
- +5.2% a year
- Since first price
- +4.7% a year since 2016
FAAR trailing returns vs SPY, QQQ, AGG
| Period | FAAR total return | Price only | S&P 500 (SPY) | Nasdaq-100 (QQQ) | U.S. bonds (AGG) |
|---|---|---|---|---|---|
| 1 month | +1.3% | +0.9% | −1.0% | −5.0% | +0.9% |
| 3 months | +5.4% | +5.0% | +3.2% | +1.9% | −0.4% |
| 6 months | −2.9% | −3.7% | +7.8% | +8.4% | −1.5% |
| YTD | +22.4% | +21.0% | +12.3% | +15.1% | −1.0% |
| 1 year | +18.6% | +6.7% | +14.4% | +15.9% | −1.1% |
| 3 years | +38.2%+11.4%/yr | +17.0% | +87.4%+23.3%/yr | +101.4%+26.3%/yr | +16.6%+5.2%/yr |
| 5 years | +41.7%+7.2%/yr | +4.0% | +79.3%+12.4%/yr | +94.0%+14.2%/yr | −0.8%−0.2%/yr |
| 10 years | +65.5%+5.2%/yr | +12.7% | — | — | — |
| Since inceptionMay 23, 2016 | +61.1%+4.7%/yr | +9.7% | — | — | — |
Total return from adjusted closes (distributions reinvested, before tax). Periods of 3 years or more are also shown annualized. Price only excludes distributions.
Growth of $10,000: FAAR vs SPY
From May 23, 2016: FAAR grew to $16,110, SPY to $43,811.
Year-end values with distributions reinvested, no taxes or trading costs. Start: first common trading day of both funds.
FAAR returns by calendar year
6 of 9 full years positive. Best 2021 (+12.3%), worst 2018 (−9.2%). 2026 is year to date.
FAAR annual returns table
| Year | FAAR | Largest drop | SPY | QQQ | AGG |
|---|---|---|---|---|---|
| 2026YTD | +22.4% | −10.6% | +12.3% | +15.1% | −1.0% |
| 2025 | +8.1% | −11.5% | +17.7% | +20.8% | +7.2% |
| 2024 | +6.0% | −4.8% | +24.9% | +25.6% | +1.3% |
| 2023 | −5.6% | −8.2% | +26.2% | +54.9% | +5.7% |
| 2022 | +10.2% | −15.0% | −18.2% | −32.6% | −13.0% |
| 2021 | +12.3% | −12.2% | +28.7% | +27.4% | −1.8% |
| 2020 | +8.6% | −7.8% | +18.3% | +48.6% | +7.5% |
| 2019 | −1.3% | −5.2% | +31.2% | +39.0% | +8.5% |
| 2018 | −9.2% | −12.1% | −4.6% | −0.1% | +0.1% |
| 2017 | +5.0% | −6.8% | +21.7% | +32.7% | +3.6% |
Largest drop = deepest fall from a high within that calendar year.
Calendar-year return vs largest drop within the year
Most years include a sizable fall at some point even when the year ends higher.
FAAR largest drawdowns
Now 3.7% below the high| Peak | Decline | Bottom | Recovered | Fall | Underwater |
|---|---|---|---|---|---|
| Jun 9, 2022 | −18.0% | Apr 8, 2025 | Jan 13, 2026 | 2.8 years | 3.6 years |
| May 21, 2018 | −16.6% | Mar 24, 2020 | Feb 22, 2021 | 1.8 years | 2.8 years |
| Jul 13, 2021 | −12.2% | Aug 20, 2021 | Feb 7, 2022 | 38 days | 7 months |
| May 18, 2026 | −10.6% | Aug 4, 2026 | not yet | 3 months | 5 months so far |
Declines from a closing high (distributions reinvested) of 10% or more. Underwater = time from the peak until the old high was regained.
FAAR risk statistics
| Statistic | 3 years | 5 years | 10 years | Since 2016 |
|---|---|---|---|---|
| Annualized return | +9.9% | +7.5% | +4.9% | +4.5% |
| Volatility (annualized) | 12.2% | 11.8% | 9.4% | 9.3% |
| Sharpe ratio | 0.47 | 0.37 | 0.32 | 0.28 |
| Sortino ratio | 0.82 | 0.61 | 0.51 | 0.46 |
| Best month | +12.0% | +12.0% | +12.0% | +12.0% |
| Worst month | −7.7% | −7.7% | −7.7% | −7.7% |
| Best 12 months | +43.4% | +43.4% | +43.4% | +43.4% |
| Worst 12 months | −4.1% | −12.1% | −12.1% | −12.1% |
| Positive months | 56% | 55% | 54% | 53% |
| Beta vs S&P 500 | -0.06 | 0.01 | 0.06 | — |
| Correlation with S&P 500 | -0.06 | 0.02 | 0.10 | — |
From monthly total returns. Sharpe and Sortino use 1–3 month T-bills (BIL) as the risk-free rate, so they need history from 2007 on.
FAAR rolling returns
| Holding period | Periods | Worst | Median | Best | Positive |
|---|---|---|---|---|---|
| 1-year | 114 | −12.1% | +3.0% | +43.4% | 66% |
| 3-year (a year) | 90 | −4.7% | +3.8% | +12.8% | 72% |
| 5-year (a year) | 66 | +1.8% | +5.5% | +9.6% | 100% |
| 10-year (a year) | 6 | +4.5% | +4.7% | +5.2% | 100% |
Every holding period starting at a month-end since 2016. Returns for 3 years and longer are annualized.
FAAR performance overview
First Trust Alternative Absolute Return… (FAAR) returned +18.6% over the past year and +5.2% a year over ten years, with distributions reinvested. Since its first recorded price in 2016 it has returned +4.7% a year, turning $10,000 into about $16,110. Over the same year S&P 500 (SPY) returned +14.4%.
The deepest decline was −18.0%, from Jun 9, 2022 to Apr 8, 2025, and it took 9 months to get back to the old high. FAAR finished 6 of its 9 full calendar years with a gain; the best year was 2021 (+12.3%) and the worst 2018 (−9.2%). Volatility has been 9.3% a year.
Related: FAAR chart, FAAR dividends. See the FAAR overview for the latest quote and fund facts.
FAAR performance FAQ
What is the FAAR return over the past year?
FAAR returned +18.6% over the 12 months to October 23, 2026, including reinvested distributions. On price alone it rose 6.7%.
What is the average annual return of FAAR?
FAAR has returned +7.2% a year over 5 years, +5.2% a year over 10 years, +4.7% a year since May 23, 2016 (total return, distributions reinvested).
How much would $10,000 invested in FAAR be worth?
$10,000 invested in FAAR at its first recorded close on May 23, 2016 would be worth about $16,110 on October 23, 2026 with distributions reinvested.
What was the worst year for FAAR?
The worst calendar year was 2018, with a total return of −9.2%. The best was 2021 at +12.3%.
What is the biggest drawdown of FAAR?
The largest peak-to-trough decline was −18.0% between June 9, 2022 and April 8, 2025. It recovered to the old high on January 13, 2026, 9 months after the bottom.
How volatile is FAAR?
Over the past 3 years FAAR had an annualized volatility of 12.2% and a Sharpe ratio of 0.47 (excess return over 1–3 month T-bills per unit of risk).