PDEC vs. FAAR
PDEC (Innovator U.S. Equity Power Buffer ETF - December) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - PDEC is a Defined Outcome fund tracking the S&P 500, while FAAR is a Commodities fund actively managed by First Trust. PDEC is passively managed, while FAAR is actively managed. Over the past 5 years, PDEC returned 8.33%/yr vs 7.72%/yr for FAAR. At a 0.03 correlation, their price movements are largely independent. PDEC charges 0.79%/yr vs 0.95%/yr for FAAR.
Performance
PDEC vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, PDEC achieves a 4.91% return, which is significantly lower than FAAR's 19.14% return.
PDEC
- 1D
- -0.61%
- 1M
- -0.15%
- YTD
- 4.91%
- 6M
- 4.48%
- 1Y
- 15.68%
- 3Y*
- 11.56%
- 5Y*
- 8.33%
- 10Y*
- —
FAAR
- 1D
- -0.91%
- 1M
- -5.21%
- YTD
- 19.14%
- 6M
- 18.06%
- 1Y
- 28.33%
- 3Y*
- 10.57%
- 5Y*
- 7.72%
- 10Y*
- 4.69%
PDEC vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
PDEC Innovator U.S. Equity Power Buffer ETF - December | 4.91% | 12.91% | 9.46% | 17.43% | -5.95% | 9.59% | 8.45% | 0.91% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | 0.59% |
Correlation
The correlation between PDEC and FAAR is -0.07, 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 | -0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since Dec 2, 2019 | 0.03 |
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Return for Risk
PDEC vs. FAAR — Risk / Return Rank
PDEC
FAAR
PDEC vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Power Buffer ETF - December (PDEC) 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.
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.
| PDEC | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.15 | ||
| Sortino ratioReturn per unit of downside risk | +0.26 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.37 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 3.30 | 4.52 | -1.23 |
| Martin ratioReturn relative to average drawdown | 16.77 | 15.18 | +1.59 |
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Drawdowns
PDEC vs. FAAR - Drawdown Comparison
The maximum PDEC drawdown since its inception was -19.31%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for PDEC and FAAR.
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Drawdown Indicators
| PDEC | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.31% | -18.03% | -1.28% |
Max Drawdown (1Y)Largest decline over 1 year | -4.78% | -6.29% | +1.51% |
Max Drawdown (3Y)Largest decline over 3 years | -10.77% | -11.54% | +0.77% |
Max Drawdown (5Y)Largest decline over 5 years | -11.53% | -18.03% | +6.50% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -0.96% | -6.29% | +5.33% |
Average DrawdownAverage peak-to-trough decline | -2.01% | -7.82% | +5.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.94% | 1.87% | -0.93% |
Volatility
PDEC vs. FAAR - Volatility Comparison
The current volatility for Innovator U.S. Equity Power Buffer ETF - December (PDEC) is 2.05%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.55%. This indicates that PDEC experiences smaller price fluctuations and is considered to be less risky than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PDEC | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.05% | 2.55% | -0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 5.21% | 9.68% | -4.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.87% | 13.38% | -6.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.94% | 12.96% | -4.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.95% | 11.54% | -0.59% |
PDEC vs. FAAR - Expense Ratio Comparison
PDEC has a 0.79% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
PDEC vs. FAAR - Dividend Comparison
PDEC has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.66%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.66% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
PDEC Innovator U.S. Equity Power Buffer ETF - December | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PDEC and FAAR have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.55%) compared to PDEC (2.05%). In terms of maximum drawdown, PDEC dropped -19.31% vs FAAR's -18.03%.
On 5-year performance, PDEC leads with 8.33% vs 7.72% for FAAR. On fees, PDEC is cheaper at 0.79% per year. On volatility, PDEC has been the lower-risk option at 2.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, PDEC has performed better with a 8.33% return vs 7.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PDEC is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 0.00% for PDEC.
PDEC is categorized as Defined Outcome, while FAAR is Commodities. They also come from different issuers: Innovator and First Trust. Their fees differ too: 0.79% for PDEC and 0.95% for FAAR.
PDEC currently has the higher Sharpe Ratio (2.30 vs 2.15), 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.
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