SHPP vs. FAAR
SHPP (Pacer Industrials and Logistics ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - SHPP is a Industrials Equities fund tracking the Pacer Global Supply Chain Infrastructure Index - Benchmark TR Net, while FAAR is a Commodities fund actively managed by First Trust. SHPP is passively managed, while FAAR is actively managed. Over the past 3 years, SHPP returned 11.73%/yr vs 10.91%/yr for FAAR. At a correlation of -0.02, they often move in opposite directions. SHPP charges 0.61%/yr vs 0.95%/yr for FAAR.
Performance
SHPP vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, SHPP achieves a 13.41% return, which is significantly lower than FAAR's 20.23% return.
SHPP
- 1D
- 0.06%
- 1M
- -1.03%
- YTD
- 13.41%
- 6M
- 12.79%
- 1Y
- 22.95%
- 3Y*
- 11.73%
- 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%
SHPP vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
SHPP Pacer Industrials and Logistics ETF | 13.41% | 12.88% | 0.76% | 20.86% | -4.12% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | -10.38% |
Correlation
The correlation between SHPP and FAAR is -0.08, 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 | -0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Jun 9, 2022 | -0.02 |
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Return for Risk
SHPP vs. FAAR — Risk / Return Rank
SHPP
FAAR
SHPP vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Pacer Industrials and Logistics ETF (SHPP) 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.
| SHPP | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.54 | ||
| Sortino ratioReturn per unit of downside risk | -0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.35 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.08 | 4.75 | -2.66 |
| Martin ratioReturn relative to average drawdown | 7.80 | 14.70 | -6.90 |
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Drawdowns
SHPP vs. FAAR - Drawdown Comparison
The maximum SHPP drawdown since its inception was -21.57%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for SHPP and FAAR.
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Drawdown Indicators
| SHPP | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.57% | -18.03% | -3.54% |
Max Drawdown (1Y)Largest decline over 1 year | -11.06% | -5.68% | -5.38% |
Max Drawdown (3Y)Largest decline over 3 years | -18.84% | -11.54% | -7.30% |
Max Drawdown (5Y)Largest decline over 5 years | — | -18.03% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -4.29% | -5.43% | +1.14% |
Average DrawdownAverage peak-to-trough decline | -4.23% | -7.82% | +3.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.95% | 1.89% | +1.06% |
Volatility
SHPP vs. FAAR - Volatility Comparison
Pacer Industrials and Logistics ETF (SHPP) has a higher volatility of 5.21% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that SHPP'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
| SHPP | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.21% | 2.47% | +2.74% |
Volatility (6M)Calculated over the trailing 6-month period | 12.69% | 9.68% | +3.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.54% | 13.37% | +2.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.48% | 12.95% | +4.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.48% | 11.53% | +5.95% |
SHPP vs. FAAR - Expense Ratio Comparison
SHPP has a 0.61% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
SHPP vs. FAAR - Dividend Comparison
SHPP's dividend yield for the trailing twelve months is around 1.76%, less than FAAR's 9.57% yield.
| 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% |
SHPP Pacer Industrials and Logistics ETF | 1.76% | 1.80% | 2.41% | 2.89% | 1.15% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SHPP and FAAR have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SHPP has higher volatility (5.21%) compared to FAAR (2.47%). In terms of maximum drawdown, SHPP dropped -21.57% vs FAAR's -18.03%.
On 3-year performance, SHPP leads with 11.73% vs 10.91% for FAAR. On fees, SHPP is cheaper at 0.61% per year. On volatility, FAAR has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, SHPP has performed better with a 11.73% return vs 10.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SHPP is cheaper with a 0.61% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 1.76% for SHPP.
SHPP is categorized as Industrials Equities, while FAAR is Commodities. They also come from different issuers: Pacer and First Trust. Their fees differ too: 0.61% for SHPP and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 1.49), 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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