First Trust Alternative Absolute Return Strategy ETF
$32.89+0.05 (+0.15%)
- 0.98%
- $246M
- +21.7%
- 9.25%
- 0.1M sh
- $32.78
- low $26.73high $35.81
The ETF.net FAAR Grade
C
Score 40 out of 100
- 18 of 23
Score 40 of 100 falls in the C band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.F11 out of 100Rank 20 of 23Mission
Whether the fund did what it promised, tested against its stated mandate.Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.B66 out of 100Rank 8 of 23Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.B59 out of 100Rank 9 of 23Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.C49 out of 100Rank 9 of 15Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.B67 out of 100Rank 7 of 23
Our read on FAAR
CMost commodity funds only bet one way: up. FAAR is actively managed and can run short positions alongside long ones across the futures complex, aiming at absolute return rather than tracking a commodity index.
The Fund seeks long-term total return through active management of long and short exchange-traded commodity futures positions, accessed through a wholly owned Cayman Islands subsidiary.
Why people hold it
- Goes both ways. The managers can hold long and short exchange-traded commodity futures, so the fund is not structurally locked into commodity prices rising.ftportfolios.com
- Active by design. A few dozen futures positions sized by the manager, not by a fixed index weighting, in a cohort where most rivals simply track a broad commodity benchmark.
- Runs as a registered 1940 Act fund, with the futures book held in a wholly owned Cayman subsidiary. Distributions are paid quarterly.
- Trading since 2016, giving the long/short approach a live record across very different commodity markets rather than a backtest.
Worth knowing
- Active costs money: 0.98% a year against a cohort median near 0.68%, and several times what index-based peers like BCI (0.26%) or CMDY (0.29%) charge.
- No index to hug. Short positions can offset a broad commodity rally, so results track the manager's calls rather than the commodity complex itself.
- Mid-sized and moderately traded, so spreads can run wider than the largest commodity futures ETFs.
FAAR Holdings
- Other
- 17
- 113%
- US Dollar
Sectors
- Financials100.0%
FAAR Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
FAAR$12,173
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | FAAR |
|---|---|
| Year to date | +22.6% |
| 1 month | +3.1% |
| 3 months | +5.9% |
| 1 year | +21.7% |
| 3 years | +11.8% |
| 5 years | +7.7% |
| 10 years | +5.2% |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | FAAR |
|---|---|---|
| 2026 YTD | +22.6% | |
| 2025 | +8.2% | |
| 2024 | +6.0% | |
| 2023 | −5.6% | |
| 2022 | +10.1% | |
| 2021 | +12.3% | |
| 2020 | +8.6% |
FAAR in the news
FAAR Dividends
- 9.25%
- $3.04
- $0.14 per share
- Quarterly
Distribution history
FAAR Risk
- 12.2%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.46
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −18.1%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.66
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
FAAR Cost
0.98%
FAAR0.98%
- The middle half of Broad Commodity Futures funds
- Median 0.70%
18 of the 22 Broad Commodity Futures funds charge less.
Other funds in Broad Commodity Futures
- CISTMiShares Strategic Metals ETFExpense ratio 0.49%1 year return —
- CGSGiShares S&P GSCI Commodity-Indexed TrustExpense ratio 0.75%1 year return +62.2%
- DDBPInvesco DB Precious Metals FundExpense ratio 0.76%1 year return +6.3%
- DUSCIUnited States Commodity Index FundExpense ratio 1.05%1 year return +45.8%
- DHXCInvestment Managers Series Trust III - Mast Hedgeindex Strategic Commodities ETFExpense ratio 0.69%1 year return —