ALAI vs. MSFO

Last updated Jun 13, 2026

ALAI (Alger AI Enablers & Adopters ETF) and MSFO (YieldMax MSFT Option Income Strategy ETF ) are both exchange-traded funds - ALAI is a Technology Equities fund actively managed by Alger, while MSFO is a Options Trading fund actively managed by YieldMax. Both are actively managed. Over the past year, ALAI returned 51.94% vs -13.71% for MSFO. A 0.61 correlation means they provide meaningful diversification when combined. ALAI charges 0.55%/yr vs 0.99%/yr for MSFO.

Performance

ALAI vs. MSFO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) and YieldMax MSFT Option Income Strategy ETF (MSFO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALAI achieves a 20.13% return, which is significantly higher than MSFO's -16.15% return.

ALAI

• 1D: 0.81%
• 1M: -0.06%
• YTD: 20.13%
• 6M: 20.63%
• 1Y: 51.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSFO

• 1D: 0.02%
• 1M: -5.33%
• YTD: -16.15%
• 6M: -15.35%
• 1Y: -13.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALAI vs. MSFO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	20.13%	39.81%	32.38%
MSFO YieldMax MSFT Option Income Strategy ETF	-16.15%	15.69%	0.02%

Correlation

The correlation between ALAI and MSFO is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.61

The correlation between ALAI and MSFO shifts across timeframes, from 0.49 (1 year) to 0.61 (all time), reflecting how their relationship changes across market environments.

Return for Risk

ALAI vs. MSFO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALAI

ALAI Risk / Return Rank: 63
ALAI Sharpe Ratio Rank: 74
ALAI Sortino Ratio Rank: 65
ALAI Omega Ratio Rank: 64
ALAI Calmar Ratio Rank: 60
ALAI Martin Ratio Rank: 54

MSFO

MSFO Risk / Return Rank: 5
MSFO Sharpe Ratio Rank: 4
MSFO Sortino Ratio Rank: 4
MSFO Omega Ratio Rank: 4
MSFO Calmar Ratio Rank: 6
MSFO Martin Ratio Rank: 5

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALAI vs. MSFO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) and YieldMax MSFT Option Income Strategy ETF (MSFO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ALAI	MSFO	Difference
Sharpe ratio: Return per unit of total volatility	2.06	-0.64	+2.70
Sortino ratio: Return per unit of downside risk	2.60	-0.75	+3.36
Omega ratio: Gain probability vs. loss probability	1.34	0.90	+0.43
Calmar ratio: Return relative to maximum drawdown	2.64	-0.47	+3.11
Martin ratio: Return relative to average drawdown	8.30	-1.02	+9.32

ALAI vs. MSFO - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 2.06, which is higher than the MSFO Sharpe Ratio of -0.64. The chart below compares the historical Sharpe Ratios of ALAI and MSFO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ALAI vs. MSFO - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, roughly equal to the maximum MSFO drawdown of -29.29%. Use the drawdown chart below to compare losses from any high point for ALAI and MSFO.

Drawdown Indicators

	ALAI	MSFO	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-29.29%	-0.07%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-29.29%	+9.81%
Current Drawdown Current decline from peak	-7.13%	-23.17%	+16.04%
Average Drawdown Average peak-to-trough decline	-5.15%	-6.69%	+1.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.18%	13.60%	-7.42%

Volatility

ALAI vs. MSFO - Volatility Comparison

Alger AI Enablers & Adopters ETF (ALAI) and YieldMax MSFT Option Income Strategy ETF (MSFO) have volatilities of 9.13% and 8.81%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	MSFO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.13%	8.81%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	19.84%	19.32%	+0.52%
Volatility (1Y) Calculated over the trailing 1-year period	24.96%	21.81%	+3.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.59%	19.81%	+8.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.59%	19.81%	+8.78%

ALAI vs. MSFO - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is lower than MSFO's 0.99% expense ratio.

Dividends

ALAI vs. MSFO - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.25%, less than MSFO's 44.05% yield.

Position	TTM	2025	2024	2023
ALAI Alger AI Enablers & Adopters ETF	1.25%	1.50%	0.66%	0.00%
MSFO YieldMax MSFT Option Income Strategy ETF	44.05%	33.91%	35.15%	6.44%

Frequently Asked Questions

Can I hold both ALAI and MSFO in my portfolio?

ALAI and MSFO have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or MSFO?

ALAI has higher volatility (9.13%) compared to MSFO (8.81%). In terms of maximum drawdown, ALAI dropped -29.36% vs MSFO's -29.29%.

Which ETF is better, ALAI or MSFO?

On 1-year performance, ALAI leads with 51.94% vs -13.71% for MSFO. On fees, ALAI is cheaper at 0.55% per year. On volatility, MSFO has been the lower-risk option at 8.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or MSFO?

Over the 1-year period, ALAI has performed better with a 51.94% return vs -13.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or MSFO?

ALAI is cheaper with a 0.55% expense ratio, compared with 0.99% for MSFO.

Which ETF pays a higher dividend yield, ALAI or MSFO?

MSFO has the higher dividend yield at 44.05%, compared with 1.25% for ALAI.

What is the main difference between ALAI and MSFO?

ALAI is categorized as Technology Equities, while MSFO is Options Trading. They also come from different issuers: Alger and YieldMax. Their fees differ too: 0.55% for ALAI and 0.99% for MSFO.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.06 vs -0.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.