PMAY vs. FAAR
PMAY (Innovator U.S. Equity Power Buffer ETF - May) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - PMAY is a Defined Outcome fund tracking the S&P 500 Price Return Index, while FAAR is a Commodities fund actively managed by First Trust. PMAY is passively managed, while FAAR is actively managed. Over the past 5 years, PMAY returned 7.03%/yr vs 7.89%/yr for FAAR. At a 0.05 correlation, their price movements are largely independent. PMAY charges 0.79%/yr vs 0.95%/yr for FAAR.
Performance
PMAY vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, PMAY achieves a 4.12% return, which is significantly lower than FAAR's 20.23% return.
PMAY
- 1D
- -0.21%
- 1M
- 0.11%
- YTD
- 4.12%
- 6M
- 4.22%
- 1Y
- 10.96%
- 3Y*
- 11.80%
- 5Y*
- 7.03%
- 10Y*
- —
FAAR
- 1D
- -0.05%
- 1M
- -4.34%
- YTD
- 20.23%
- 6M
- 19.92%
- 1Y
- 26.86%
- 3Y*
- 10.91%
- 5Y*
- 7.89%
- 10Y*
- 4.79%
PMAY vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
PMAY Innovator U.S. Equity Power Buffer ETF - May | 4.12% | 10.26% | 14.08% | 12.05% | -8.08% | 7.80% | 10.74% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 11.53% |
Correlation
The correlation between PMAY and FAAR is -0.10, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.10 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since May 1, 2020 | 0.05 |
The correlation between PMAY and FAAR shifts across timeframes, from -0.10 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
PMAY vs. FAAR — Risk / Return Rank
PMAY
FAAR
PMAY vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Power Buffer ETF - May (PMAY) 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.
| PMAY | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.64 | ||
| Sortino ratioReturn per unit of downside risk | +1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.61 | 1.35 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 5.96 | 4.75 | +1.21 |
| Martin ratioReturn relative to average drawdown | 31.99 | 14.70 | +17.29 |
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Drawdowns
PMAY vs. FAAR - Drawdown Comparison
The maximum PMAY drawdown since its inception was -13.05%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for PMAY and FAAR.
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Drawdown Indicators
| PMAY | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.05% | -18.03% | +4.98% |
Max Drawdown (1Y)Largest decline over 1 year | -1.85% | -5.68% | +3.83% |
Max Drawdown (3Y)Largest decline over 3 years | -9.43% | -11.54% | +2.11% |
Max Drawdown (5Y)Largest decline over 5 years | -13.05% | -18.03% | +4.98% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -0.57% | -5.43% | +4.86% |
Average DrawdownAverage peak-to-trough decline | -2.10% | -7.82% | +5.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 1.89% | -1.55% |
Volatility
PMAY vs. FAAR - Volatility Comparison
The current volatility for Innovator U.S. Equity Power Buffer ETF - May (PMAY) is 2.12%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that PMAY 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
| PMAY | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.12% | 2.47% | -0.35% |
Volatility (6M)Calculated over the trailing 6-month period | 3.44% | 9.68% | -6.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.15% | 13.37% | -9.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.68% | 12.95% | -4.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.41% | 11.53% | -3.12% |
PMAY vs. FAAR - Expense Ratio Comparison
PMAY has a 0.79% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
PMAY vs. FAAR - Dividend Comparison
PMAY has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.57%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.57% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
PMAY Innovator U.S. Equity Power Buffer ETF - May | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PMAY and FAAR have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.47%) compared to PMAY (2.12%). In terms of maximum drawdown, PMAY dropped -13.05% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.89% vs 7.03% for PMAY. On fees, PMAY is cheaper at 0.79% per year. On volatility, PMAY has been the lower-risk option at 2.12%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FAAR has performed better with a 7.89% return vs 7.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PMAY is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.00% for PMAY.
PMAY 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 PMAY and 0.95% for FAAR.
PMAY currently has the higher Sharpe Ratio (2.66 vs 2.02), 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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