FAAR vs TOLZ Fund Comparison

A comparison between FAAR and TOLZ based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on FAAR vs TOLZ

Here's an in depth look at the differences between First Trust Alternative Absolute Return Strategy ETF($FAAR) and ProShares DJ Brookfield Global Infrastructure ETF($TOLZ).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • faar
  • ETF
  • Commodities
  • Broad

First Trust Alternative Absolute Return Strategy ETF

Expenses: 0.95% (Better than 1% of similar funds)

This is a bad choice for a Broad Commodities fund. See why »

  • tolz
  • ETF
  • Allocation
  • Global Equity

ProShares DJ Brookfield Global Infrastructure ETF

Expenses: 0.46% (Better than 1% of similar funds)

This is an OK choice for a Global Equity Allocation fund. See why »

Both $FAAR and $TOLZ are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

FAARTOLZ
Market Score 2.6 /10 3.8 /10
Category Score 0.0 /10 5.0 /10
Total2.68.8

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $TOLZ

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, FAAR has an expense ratio of 0.95% while TOLZ has an expense ratio of 0.46%.

Winner: $TOLZ

Fund Size Comparison

Both FAAR and TOLZ have a similar number of assets under management. FAAR has 37.4 Million in assets under management, while TOLZ has 143 Million.

Minafi categorizes both of these funds as small funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? FAAR or TOLZ?

Comparing these two funds isn't an apples to apples comparison. FAAR is a CommoditiesBroad fund, while TOLZ is a AllocationGlobal Equity fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives FAAR a score of 25 and TOLZ a score of 56.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$FAAR

First Trust Alternative Absolute Return Strategy ETF

25

Read More
Ratings
Rating TypeRating
Expense Ratio Score6/10
Expense Rating1/10
Market Score3/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateMay-18-2016
ExchangeNASDAQ
Expense Ratio0.950%
Net Assets37.4 Million
Yield1.03%
Holdings
DescriptionInfo
MarketCommodities
CategoryBroad
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

$TOLZ

ProShares DJ Brookfield Global Infrastructure ETF

56

Read More
Ratings
Rating TypeRating
Diversification Score0/10
Expense Ratio Score9/10
Expense Rating5/10
Market Score4/10
Category Score5/10
Overview
OverviewDetails
Fund TypeETF
Inception DateAug-31-2016
ExchangeNYSE ARCA
Expense Ratio0.460%
Net Assets143 Million
Yield3.42%
Holdings
DescriptionInfo
MarketAllocation
CategoryGlobal Equity
Sectors
  • Basic Materials 0.00%
  • Communication Services 2.78%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 27.81%
  • Financial Services 0.06%
  • Healthcare 0.00%
  • Industrials 14.07%
  • Real Estate 18.88%
  • Technology 0.16%
  • Utilities 36.23%
Regions
  • Asia Developed 1.60%
  • Asia Emerging 4.10%
  • Australasia 4.77%
  • Europe Developed 14.96%
  • Japan 1.62%
  • Latin America 1.44%
  • North America 65.55%
  • United Kingdom 5.97%

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