FSCO vs. FAAR

Last updated Jun 4, 2026

FSCO (FS Credit Opportunities Corp.) is a stock, while FAAR (First Trust Alternative Absolute Return Strategy ETF) is Commodities fund actively managed by First Trust. Over the past 3 years, FSCO returned 15.11%/yr vs 11.79%/yr for FAAR. At a correlation of -0.00, they often move in opposite directions.

Performance

FSCO vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FS Credit Opportunities Corp. (FSCO) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSCO achieves a -18.38% return, which is significantly lower than FAAR's 25.73% return.

FSCO

• 1D: -1.22%
• 1M: -5.26%
• YTD: -18.38%
• 6M: -13.63%
• 1Y: -23.27%
• 3Y*: 15.11%
• 5Y*: —
• 10Y*: —

FAAR

• 1D: 0.01%
• 1M: -0.79%
• YTD: 25.73%
• 6M: 23.17%
• 1Y: 40.73%
• 3Y*: 11.79%
• 5Y*: 8.07%
• 10Y*: 5.17%

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

FSCO vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FSCO FS Credit Opportunities Corp.	-18.38%	3.68%	34.88%	36.98%	7.16%
FAAR First Trust Alternative Absolute Return Strategy ETF	25.73%	8.07%	5.97%	-5.63%	0.82%

Correlation

The correlation between FSCO and FAAR is -0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.04
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Nov 15, 2022	-0.00

Return for Risk

FSCO vs. FAAR — Risk / Return Rank

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

FSCO

FSCO Risk / Return Rank: 10
FSCO Sharpe Ratio Rank: 7
FSCO Sortino Ratio Rank: 10
FSCO Omega Ratio Rank: 9
FSCO Calmar Ratio Rank: 16
FSCO Martin Ratio Rank: 8

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 84
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

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.

FSCO vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FS Credit Opportunities Corp. (FSCO) and First Trust Alternative Absolute Return Strategy ETF (FAAR). 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.

	FSCO	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	-0.86	3.04	-3.90
Sortino ratio: Return per unit of downside risk	-1.08	4.23	-5.31
Omega ratio: Gain probability vs. loss probability	0.85	1.52	-0.67
Calmar ratio: Return relative to maximum drawdown	-0.66	8.44	-9.10
Martin ratio: Return relative to average drawdown	-1.38	23.64	-25.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSCO vs. FAAR - Sharpe Ratio Comparison

The current FSCO Sharpe Ratio is -0.86, which is lower than the FAAR Sharpe Ratio of 3.04. The chart below compares the historical Sharpe Ratios of FSCO and FAAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FSCO	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.86	3.04	-3.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.62	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.45	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.45	+0.12

Drawdowns

FSCO vs. FAAR - Drawdown Comparison

The maximum FSCO drawdown since its inception was -35.53%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FSCO and FAAR.

Drawdown Indicators

	FSCO	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-35.53%	-18.03%	-17.50%
Max Drawdown (1Y) Largest decline over 1 year	-35.53%	-4.85%	-30.68%
Max Drawdown (3Y) Largest decline over 3 years	-35.53%	-11.54%	-23.99%
Max Drawdown (5Y) Largest decline over 5 years	—	-18.03%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-28.73%	-1.11%	-27.62%
Average Drawdown Average peak-to-trough decline	-7.83%	-7.85%	+0.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.89%	1.73%	+15.16%

Volatility

FSCO vs. FAAR - Volatility Comparison

FS Credit Opportunities Corp. (FSCO) has a higher volatility of 5.19% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.44%. This indicates that FSCO's price experiences larger fluctuations and is considered to be riskier than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSCO	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.19%	2.44%	+2.75%
Volatility (6M) Calculated over the trailing 6-month period	22.58%	9.72%	+12.86%
Volatility (1Y) Calculated over the trailing 1-year period	27.07%	13.48%	+13.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.71%	13.02%	+14.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.71%	11.51%	+16.20%

Dividends

FSCO vs. FAAR - Dividend Comparison

FSCO's dividend yield for the trailing twelve months is around 16.15%, more than FAAR's 9.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.15%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
FSCO FS Credit Opportunities Corp.	16.15%	12.65%	10.47%	11.26%	1.95%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FSCO and FAAR in my portfolio?

FSCO and FAAR have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSCO or FAAR?

FSCO has higher volatility (5.19%) compared to FAAR (2.44%). In terms of maximum drawdown, FSCO dropped -35.53% vs FAAR's -18.03%.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (3.04 vs -0.86), 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.