SCO vs. FAAR
SCO (ProShares UltraShort Bloomberg Crude Oil) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - SCO is a Oil & Gas fund tracking the Bloomberg Commodity Balanced WTI Crude Oil Index (-200%), while FAAR is a Commodities fund actively managed by First Trust. SCO is passively managed, while FAAR is actively managed. Over the past 10 years, SCO returned -36.90%/yr vs 4.74%/yr for FAAR. At a correlation of -0.44, they often move in opposite directions. Both charge a 0.95% expense ratio.
Performance
SCO vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, SCO achieves a -59.41% return, which is significantly lower than FAAR's 20.28% return. Over the past 10 years, SCO has underperformed FAAR with an annualized return of -36.90%, while FAAR has yielded a comparatively higher 4.74% annualized return.
SCO
- 1D
- -0.09%
- 1M
- 27.56%
- YTD
- -59.41%
- 6M
- -60.52%
- 1Y
- -46.47%
- 3Y*
- -32.01%
- 5Y*
- -39.29%
- 10Y*
- -36.90%
FAAR
- 1D
- 0.31%
- 1M
- -4.57%
- YTD
- 20.28%
- 6M
- 20.86%
- 1Y
- 26.92%
- 3Y*
- 10.85%
- 5Y*
- 8.03%
- 10Y*
- 4.74%
SCO vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCO ProShares UltraShort Bloomberg Crude Oil | -59.41% | 15.90% | -19.00% | -12.41% | -62.59% | -72.62% | -4.20% | -58.50% | 19.22% | -22.40% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.28% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between SCO and FAAR is -0.74, 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 | -0.74 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.56 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.44 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | -0.44 |
Over the past year, the inverse relationship between SCO and FAAR has strengthened: their correlation has moved from -0.44 to -0.74, meaning they now move in opposite directions more often than their long-term average.
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Return for Risk
SCO vs. FAAR — Risk / Return Rank
SCO
FAAR
SCO vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort Bloomberg Crude Oil (SCO) 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.
| SCO | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.84 | ||
| Sortino ratioReturn per unit of downside risk | -4.06 | ||
| Omega ratioGain probability vs. loss probability | 0.87 | 1.34 | -0.47 |
| Calmar ratioReturn relative to maximum drawdown | -0.66 | 4.72 | -5.37 |
| Martin ratioReturn relative to average drawdown | -1.29 | 14.40 | -15.69 |
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Drawdowns
SCO vs. FAAR - Drawdown Comparison
The maximum SCO drawdown since its inception was -99.80%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for SCO and FAAR.
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Drawdown Indicators
| SCO | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.80% | -18.03% | -81.77% |
Max Drawdown (1Y)Largest decline over 1 year | -72.24% | -5.68% | -66.56% |
Max Drawdown (3Y)Largest decline over 3 years | -78.76% | -11.54% | -67.22% |
Max Drawdown (5Y)Largest decline over 5 years | -94.80% | -18.03% | -76.77% |
Max Drawdown (10Y)Largest decline over 10 years | -99.51% | -18.03% | -81.48% |
Current DrawdownCurrent decline from peak | -99.73% | -5.39% | -94.34% |
Average DrawdownAverage peak-to-trough decline | -85.19% | -7.83% | -77.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 36.61% | 1.87% | +34.74% |
Volatility
SCO vs. FAAR - Volatility Comparison
ProShares UltraShort Bloomberg Crude Oil (SCO) has a higher volatility of 16.80% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.50%. This indicates that SCO'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.
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Volatility by Period
| SCO | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 16.80% | 2.50% | +14.30% |
Volatility (6M)Calculated over the trailing 6-month period | 47.16% | 9.71% | +37.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.03% | 13.36% | +43.67% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 60.02% | 12.95% | +47.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 71.92% | 11.53% | +60.39% |
SCO vs. FAAR - Expense Ratio Comparison
Both SCO and FAAR have an expense ratio of 0.95%.
Dividends
SCO vs. FAAR - Dividend Comparison
SCO 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% |
SCO ProShares UltraShort Bloomberg Crude Oil | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SCO and FAAR have a correlation of -0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCO has higher volatility (16.80%) compared to FAAR (2.50%). In terms of maximum drawdown, SCO dropped -99.80% vs FAAR's -18.03%.
On 10-year performance, FAAR leads with 4.74% vs -36.90% for SCO. Both ETFs have the same 0.95% expense ratio. On volatility, FAAR has been the lower-risk option at 2.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAAR has performed better with a 4.74% return vs -36.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCO and FAAR have the same expense ratio: 0.95% per year.
FAAR has the higher dividend yield at 9.57%, compared with 0.00% for SCO.
SCO is categorized as Oil & Gas, while FAAR is Commodities. They also come from different issuers: ProShares and First Trust.
FAAR currently has the higher Sharpe Ratio (2.01 vs -0.83), 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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