First Trust Alternative Absolute Return Strategy ETF (FAAR)

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First Trust Alternative Absolute Return Strategy ETF (FAAR) is up 17.4% since the beginning of the year. FAAR is currently trading at $32 per share. Investors who bought $1,000 worth of FAAR shares 5 years ago would now be looking at an investment worth $1,436.

First Trust Alternative Absolute Return Strategy ETF (FAAR) has returned 17.40% so far this year and 28.26% over the past 12 months. Over the last ten years, FAAR has returned 4.54% per year, falling short of the S&P 500 Index benchmark, which averaged 13.70% annually.

Based on dividend-adjusted daily data since May 23, 2016, FAAR's average daily return is +0.02%, while the average monthly return is +0.39%. At this rate, an investment would double in approximately 14.8 years.

Historically, 54% of months were positive and 46% were negative. The best month was Mar 2026 with a return of +12.0%, while the worst month was Apr 2025 at -7.8%. The longest winning streak lasted 7 consecutive months, and the longest losing streak was 5 months.

On a daily basis, FAAR closed higher 49% of trading days. The best single day was Jul 13, 2021 with a return of +8.5%, while the worst single day was Jun 29, 2020 at -7.8%.

First Trust Alternative Absolute Return Strategy ETF has an annualized alpha of 4.51%, beta of 0.04, and R2 of 0.00 versus S&P 500 Index. Calculated based on daily prices since May 23, 2016.

• This ETF participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (16.63%) than losses (9.60%) - typical of diversified or defensive assets.
• Beta of 0.04 may look defensive, but with R2 of 0.00 this ETF is largely uncorrelated with S&P 500 Index - low beta reflects independence, not downside protection. See the Volatility section for a true picture of this ETF's risk.
• R2 of 0.00 means this ETF moves largely independently of S&P 500 Index - capture ratios reflect limited market correlation rather than active downside protection. Consider using a more representative benchmark.

FAAR has a high expense ratio of 0.95%, indicating above-average management fees.

FAAR ranks 77 for risk / return — better than 77% of ETFs on our site. You're getting solid returns for the risk taken. A good sign, especially for investors who want growth without excessive volatility.

First Trust Alternative Absolute Return Strategy ETF provided a 9.80% dividend yield over the last twelve months, with an annual payout of $3.11 per share. The fund has been increasing its distributions for 2 consecutive years.

The table displays the monthly dividend distributions for First Trust Alternative Absolute Return Strategy ETF. The dividends shown in the table have been adjusted to account for any splits that may have occurred.

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.

The table below displays the maximum drawdowns of the First Trust Alternative Absolute Return Strategy ETF. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the First Trust Alternative Absolute Return Strategy ETF was 18.03%, occurring on Apr 8, 2025. Recovery took 192 trading sessions.

The current First Trust Alternative Absolute Return Strategy ETF drawdown is 7.66%.

The chart below shows the rolling one-month volatility.