CAAA vs FTBD

CAAA vs FTBD

Which is better, CAAA or FTBD?

CAAA has been ahead.

CAAA has a lower expense ratio. CAAA led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.92.

Lower Fees: CAAAHigher Returns: CAAA

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricCAAAFTBD
Expense Ratio0.30%Best0.55%
AUM$35M$37M
Dividend Yield4.94%5.68%
Holdings235755
YTD Return-0.25%Best-1.46%
1Y Return+0.08%Best-1.51%
3Y Return (annualized)-+5.55%
Volatility (annualized)3.2%Best4.9%
Max Drawdown-2.3%Best-4.9%
$10,000 over 2.6 years$11,212Best$10,960
Fund FamilyFirst Trust Portfolios (US)Fidelity Investments (US)
CategoryFixed IncomeFixed Income
StyleLong Term High QualityLong Term High Quality
InceptionFeb 27, 2024Jan 24, 2023

Not shown on this pair: 5Y Return (annualized), Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Feb 28, 2024 to Oct 14, 2026 (2.6 years).

CAAA vs FTBD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.6 years both funds cover.

Compare CAAA against instead:CAAA vs SPYCAAA vs QQQCAAA vs VOOCAAA vs VTIFTBD against:FTBD vs VXUS

CAAA vs FTBD Performance

First Trust AAA CMBS ETF (CAAA) is an ETF from First Trust Portfolios (US) and Fidelity Tactical Bond ETF (FTBD) is an ETF from Fidelity Investments (US). Over the past year CAAA returned +0.08% while FTBD returned -1.51%. Year to date, CAAA is down 0.25% versus a loss of 1.46% for FTBD.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FTBD has been the more volatile fund, with annualized monthly volatility of 4.9% compared with 3.2% for CAAA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -2.3% for CAAA and -4.9% for FTBD. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

CAAA charges 0.30% per year while FTBD charges 0.55%. On a $10,000 position that is $30 vs $55 annually, a gap of $25 per year that compounds over a long holding period. On income, CAAA currently yields 4.94% against 5.68% for FTBD.

Holdings Overlap

We hold position weights for 1 holding in CAAA and 136 in FTBD, totalling 0.8% and 39.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 1 positions we hold weights for in CAAA and 136 in FTBD, against full books of 235 and 755.

You are not choosing between two funds in isolation.

Whichever of CAAA and FTBD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

CAAAFTBD

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Frequently Asked Questions

Which is cheaper, CAAA or FTBD?

CAAA has an expense ratio of 0.30% while FTBD charges 0.55%. CAAA is the cheaper option, by $25 a year on a $10,000 investment.

Which performed better, CAAA or FTBD?

Over the past year CAAA returned +0.08% vs -1.51% for FTBD, so CAAA leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CAAA or FTBD?

FTBD has been the more volatile fund at 4.9% annualized versus 3.2% for CAAA. Worst drawdown: CAAA -2.3% vs FTBD -4.9%.

Should I hold both CAAA and FTBD?

CAAA and FTBD have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, CAAA or FTBD?

CAAA yields 4.94% while FTBD yields 5.68%, so FTBD currently pays the higher dividend yield.

Is FTBD better than CAAA?

CAAA has a lower expense ratio. CAAA led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.92. Which one suits a particular account depends on what it is for. This is information, not a recommendation.