ARP vs. LALT

Last updated Jun 23, 2026

ARP (Pmv Adaptive Risk Parity ETF) and LALT (First Trust Multi-Strategy Alternative ETF) are both exchange-traded funds - ARP is a Tactical Allocation fund actively managed by PMV, while LALT is a Global Allocation fund actively managed by First Trust. Both are actively managed. Over the past 3 years, ARP returned 14.35%/yr vs 10.18%/yr for LALT. A 0.58 correlation means they provide meaningful diversification when combined. ARP charges 1.42%/yr vs 1.94%/yr for LALT.

Performance

ARP vs. LALT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pmv Adaptive Risk Parity ETF (ARP) and First Trust Multi-Strategy Alternative ETF (LALT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with ARP having a 8.51% return and LALT slightly higher at 8.81%.

ARP

• 1D: -0.18%
• 1M: -1.63%
• YTD: 8.51%
• 6M: 7.32%
• 1Y: 23.54%
• 3Y*: 14.35%
• 5Y*: —
• 10Y*: —

LALT

• 1D: 0.09%
• 1M: -2.03%
• YTD: 8.81%
• 6M: 8.66%
• 1Y: 18.67%
• 3Y*: 10.18%
• 5Y*: —
• 10Y*: —

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

ARP vs. LALT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ARP Pmv Adaptive Risk Parity ETF	8.51%	18.33%	13.79%	0.61%
LALT First Trust Multi-Strategy Alternative ETF	8.81%	10.79%	8.77%	0.88%

Correlation

The correlation between ARP and LALT is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (All Time) Calculated using the full available price history since Feb 1, 2023	0.58

The correlation between ARP and LALT has been stable across timeframes, ranging from 0.58 to 0.59 - a consistent structural relationship.

Return for Risk

ARP vs. LALT — Risk / Return Rank

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

ARP

ARP Risk / Return Rank: 49
ARP Sharpe Ratio Rank: 49
ARP Sortino Ratio Rank: 42
ARP Omega Ratio Rank: 55
ARP Calmar Ratio Rank: 48
ARP Martin Ratio Rank: 51

LALT

LALT Risk / Return Rank: 89
LALT Sharpe Ratio Rank: 86
LALT Sortino Ratio Rank: 86
LALT Omega Ratio Rank: 87
LALT Calmar Ratio Rank: 93
LALT Martin Ratio Rank: 92

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.

ARP vs. LALT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pmv Adaptive Risk Parity ETF (ARP) and First Trust Multi-Strategy Alternative ETF (LALT). 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.

	ARP	LALT	Difference
Sharpe ratio: Return per unit of total volatility	1.65	2.67	-1.03
Sortino ratio: Return per unit of downside risk	2.09	3.70	-1.61
Omega ratio: Gain probability vs. loss probability	1.33	1.51	-0.18
Calmar ratio: Return relative to maximum drawdown	2.34	6.54	-4.20
Martin ratio: Return relative to average drawdown	8.49	21.71	-13.21

ARP vs. LALT - Sharpe Ratio Comparison

The current ARP Sharpe Ratio is 1.65, which is lower than the LALT Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of ARP and LALT, 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

ARP vs. LALT - Drawdown Comparison

The maximum ARP drawdown since its inception was -10.13%, which is greater than LALT's maximum drawdown of -6.97%. Use the drawdown chart below to compare losses from any high point for ARP and LALT.

Drawdown Indicators

	ARP	LALT	Difference
Max Drawdown Largest peak-to-trough decline	-10.13%	-6.97%	-3.16%
Max Drawdown (1Y) Largest decline over 1 year	-10.13%	-2.87%	-7.26%
Max Drawdown (3Y) Largest decline over 3 years	-10.13%	-6.97%	-3.16%
Current Drawdown Current decline from peak	-3.05%	-2.50%	-0.55%
Average Drawdown Average peak-to-trough decline	-1.84%	-0.99%	-0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	0.86%	+1.92%

Volatility

ARP vs. LALT - Volatility Comparison

Pmv Adaptive Risk Parity ETF (ARP) has a higher volatility of 5.20% compared to First Trust Multi-Strategy Alternative ETF (LALT) at 1.94%. This indicates that ARP's price experiences larger fluctuations and is considered to be riskier than LALT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARP	LALT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.20%	1.94%	+3.26%
Volatility (6M) Calculated over the trailing 6-month period	12.68%	5.62%	+7.06%
Volatility (1Y) Calculated over the trailing 1-year period	14.40%	7.03%	+7.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.33%	5.82%	+4.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.33%	5.82%	+4.51%

ARP vs. LALT - Expense Ratio Comparison

ARP has a 1.42% expense ratio, which is lower than LALT's 1.94% expense ratio.

Dividends

ARP vs. LALT - Dividend Comparison

ARP's dividend yield for the trailing twelve months is around 6.03%, more than LALT's 3.74% yield.

Position	TTM	2025	2024	2023	2022
ARP Pmv Adaptive Risk Parity ETF	6.03%	6.54%	5.29%	2.67%	0.06%
LALT First Trust Multi-Strategy Alternative ETF	3.74%	2.03%	2.06%	2.44%	0.00%

Frequently Asked Questions

Can I hold both ARP and LALT in my portfolio?

ARP and LALT have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARP or LALT?

ARP has higher volatility (5.20%) compared to LALT (1.94%). In terms of maximum drawdown, ARP dropped -10.13% vs LALT's -6.97%.

Which ETF is better, ARP or LALT?

On 3-year performance, ARP leads with 14.35% vs 10.18% for LALT. On fees, ARP is cheaper at 1.42% per year. On volatility, LALT has been the lower-risk option at 1.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARP or LALT?

Over the 3-year period, ARP has performed better with a 14.35% return vs 10.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARP or LALT?

ARP is cheaper with a 1.42% expense ratio, compared with 1.94% for LALT.

Which ETF pays a higher dividend yield, ARP or LALT?

ARP has the higher dividend yield at 6.03%, compared with 3.74% for LALT.

What is the main difference between ARP and LALT?

ARP is categorized as Tactical Allocation, while LALT is Global Allocation. They also come from different issuers: PMV and First Trust. Their fees differ too: 1.42% for ARP and 1.94% for LALT.

Which has better risk-adjusted returns?

LALT currently has the higher Sharpe Ratio (2.67 vs 1.65), 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.