PSCQ vs. FAAR

Last updated Jun 23, 2026

PSCQ (Pacer Swan SOS Conservative (October) ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - PSCQ is a Options Trading fund actively managed by Pacer, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, PSCQ returned 12.25%/yr vs 10.91%/yr for FAAR. At a correlation of -0.01, they often move in opposite directions. PSCQ charges 0.60%/yr vs 0.95%/yr for FAAR.

Performance

PSCQ vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer Swan SOS Conservative (October) ETF (PSCQ) 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, PSCQ achieves a 5.48% return, which is significantly lower than FAAR's 20.23% return.

PSCQ

• 1D: -0.07%
• 1M: 0.57%
• YTD: 5.48%
• 6M: 5.47%
• 1Y: 15.25%
• 3Y*: 12.25%
• 5Y*: —
• 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%

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

PSCQ vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PSCQ Pacer Swan SOS Conservative (October) ETF	5.48%	11.50%	9.72%	19.79%	-4.44%	2.38%
FAAR First Trust Alternative Absolute Return Strategy ETF	20.23%	8.07%	5.97%	-5.63%	10.15%	0.14%

Correlation

The correlation between PSCQ 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 (All Time) Calculated using the full available price history since Oct 1, 2021	-0.01

Return for Risk

PSCQ vs. FAAR — Risk / Return Rank

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

PSCQ

PSCQ Risk / Return Rank: 82
PSCQ Sharpe Ratio Rank: 83
PSCQ Sortino Ratio Rank: 88
PSCQ Omega Ratio Rank: 88
PSCQ Calmar Ratio Rank: 69
PSCQ Martin Ratio Rank: 84

FAAR

FAAR Risk / Return Rank: 70
FAAR Sharpe Ratio Rank: 64
FAAR Sortino Ratio Rank: 65
FAAR Omega Ratio Rank: 58
FAAR Calmar Ratio Rank: 87
FAAR Martin Ratio Rank: 78

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.

PSCQ vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer Swan SOS Conservative (October) ETF (PSCQ) 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.

	PSCQ	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	2.59	2.02	+0.57
Sortino ratio: Return per unit of downside risk	3.82	2.89	+0.93
Omega ratio: Gain probability vs. loss probability	1.52	1.35	+0.18
Calmar ratio: Return relative to maximum drawdown	3.34	4.75	-1.41
Martin ratio: Return relative to average drawdown	16.65	14.70	+1.96

PSCQ vs. FAAR - Sharpe Ratio Comparison

The current PSCQ Sharpe Ratio is 2.59, which is comparable to the FAAR Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of PSCQ 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.

Drawdowns

PSCQ vs. FAAR - Drawdown Comparison

The maximum PSCQ drawdown since its inception was -9.92%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for PSCQ and FAAR.

Drawdown Indicators

	PSCQ	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-9.92%	-18.03%	+8.11%
Max Drawdown (1Y) Largest decline over 1 year	-4.58%	-5.68%	+1.10%
Max Drawdown (3Y) Largest decline over 3 years	-9.92%	-11.54%	+1.62%
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	-0.19%	-5.43%	+5.24%
Average Drawdown Average peak-to-trough decline	-1.57%	-7.82%	+6.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	1.89%	-0.97%

Volatility

PSCQ vs. FAAR - Volatility Comparison

The current volatility for Pacer Swan SOS Conservative (October) ETF (PSCQ) is 1.65%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that PSCQ 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.

Volatility by Period

	PSCQ	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.65%	2.47%	-0.82%
Volatility (6M) Calculated over the trailing 6-month period	4.65%	9.68%	-5.03%
Volatility (1Y) Calculated over the trailing 1-year period	5.93%	13.37%	-7.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.56%	12.95%	-5.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.56%	11.53%	-3.97%

PSCQ vs. FAAR - Expense Ratio Comparison

PSCQ has a 0.60% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

PSCQ vs. FAAR - Dividend Comparison

PSCQ 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%
PSCQ Pacer Swan SOS Conservative (October) ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSCQ and FAAR in my portfolio?

PSCQ 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.

Which is riskier, PSCQ or FAAR?

FAAR has higher volatility (2.47%) compared to PSCQ (1.65%). In terms of maximum drawdown, PSCQ dropped -9.92% vs FAAR's -18.03%.

Which ETF is better, PSCQ or FAAR?

On 3-year performance, PSCQ leads with 12.25% vs 10.91% for FAAR. On fees, PSCQ is cheaper at 0.60% per year. On volatility, PSCQ has been the lower-risk option at 1.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCQ or FAAR?

Over the 3-year period, PSCQ has performed better with a 12.25% return vs 10.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCQ or FAAR?

PSCQ is cheaper with a 0.60% expense ratio, compared with 0.95% for FAAR.

Which ETF pays a higher dividend yield, PSCQ or FAAR?

FAAR has the higher dividend yield at 9.57%, compared with 0.00% for PSCQ.

What is the main difference between PSCQ and FAAR?

PSCQ is categorized as Options Trading, while FAAR is Commodities. They also come from different issuers: Pacer and First Trust. Their fees differ too: 0.60% for PSCQ and 0.95% for FAAR.

Which has better risk-adjusted returns?

PSCQ currently has the higher Sharpe Ratio (2.59 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.