LALT vs. ARP

Last updated Jun 4, 2026

LALT (First Trust Multi-Strategy Alternative ETF) and ARP (Pmv Adaptive Risk Parity ETF) are both exchange-traded funds - LALT is a Global Allocation fund actively managed by First Trust, while ARP is a Tactical Allocation fund actively managed by PMV. Both are actively managed. Over the past 3 years, LALT returned 10.48%/yr vs 15.46%/yr for ARP. A 0.58 correlation means they provide meaningful diversification when combined. LALT charges 1.94%/yr vs 1.42%/yr for ARP.

Performance

LALT vs. ARP - Performance Comparison

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

Returns By Period

In the year-to-date period, LALT achieves a 10.70% return, which is significantly lower than ARP's 11.60% return.

LALT

• 1D: -0.44%
• 1M: -0.12%
• YTD: 10.70%
• 6M: 10.50%
• 1Y: 22.25%
• 3Y*: 10.48%
• 5Y*: —
• 10Y*: —

ARP

• 1D: -0.29%
• 1M: 2.94%
• YTD: 11.60%
• 6M: 12.32%
• 1Y: 27.77%
• 3Y*: 15.46%
• 5Y*: —
• 10Y*: —

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

LALT vs. ARP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
LALT First Trust Multi-Strategy Alternative ETF	10.70%	10.79%	8.77%	0.88%
ARP Pmv Adaptive Risk Parity ETF	11.60%	18.33%	13.79%	0.48%

Correlation

The correlation between LALT and ARP 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 2, 2023	0.58

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

LALT vs. ARP - Sectors Allocation Comparison

Sectors	LALT	ARP
Financial Services	31.4%	22.7%
Technology	22.1%	14.6%
Consumer Cyclical	7.9%	8.5%
Industrials	7.7%	16.9%
Healthcare	7.3%	8.1%
Energy	5.8%	5.5%
Consumer Defensive	5.5%	5.5%
Communication Services	5.2%	4.3%
Basic Materials	4.4%	7.8%
Real Estate	1.5%	2.7%
Utilities	1.2%	3.4%

Return for Risk

LALT vs. ARP — Risk / Return Rank

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

LALT

LALT Risk / Return Rank: 93
LALT Sharpe Ratio Rank: 92
LALT Sortino Ratio Rank: 93
LALT Omega Ratio Rank: 93
LALT Calmar Ratio Rank: 95
LALT Martin Ratio Rank: 95

ARP

ARP Risk / Return Rank: 60
ARP Sharpe Ratio Rank: 61
ARP Sortino Ratio Rank: 53
ARP Omega Ratio Rank: 71
ARP Calmar Ratio Rank: 56
ARP Martin Ratio Rank: 59

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.

LALT vs. ARP - Risk-Adjusted Trends Comparison

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

	LALT	ARP	Difference
Sharpe ratio: Return per unit of total volatility	3.28	2.06	+1.22
Sortino ratio: Return per unit of downside risk	4.62	2.57	+2.05
Omega ratio: Gain probability vs. loss probability	1.65	1.43	+0.22
Calmar ratio: Return relative to maximum drawdown	7.79	2.76	+5.04
Martin ratio: Return relative to average drawdown	30.25	10.44	+19.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LALT vs. ARP - Sharpe Ratio Comparison

The current LALT Sharpe Ratio is 3.28, which is higher than the ARP Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of LALT and ARP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LALT	ARP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.28	2.06	+1.22
Sharpe Ratio (All Time) Calculated using the full available price history	1.62	1.36	+0.27

Drawdowns

LALT vs. ARP - Drawdown Comparison

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

Drawdown Indicators

	LALT	ARP	Difference
Max Drawdown Largest peak-to-trough decline	-6.97%	-10.13%	+3.16%
Max Drawdown (1Y) Largest decline over 1 year	-2.87%	-10.13%	+7.26%
Max Drawdown (3Y) Largest decline over 3 years	-6.97%	-10.13%	+3.16%
Current Drawdown Current decline from peak	-0.80%	-0.29%	-0.51%
Average Drawdown Average peak-to-trough decline	-0.98%	-1.81%	+0.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.74%	2.67%	-1.93%

Volatility

LALT vs. ARP - Volatility Comparison

The current volatility for First Trust Multi-Strategy Alternative ETF (LALT) is 1.23%, while Pmv Adaptive Risk Parity ETF (ARP) has a volatility of 2.95%. This indicates that LALT experiences smaller price fluctuations and is considered to be less risky than ARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LALT	ARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	2.95%	-1.72%
Volatility (6M) Calculated over the trailing 6-month period	5.40%	11.70%	-6.30%
Volatility (1Y) Calculated over the trailing 1-year period	6.81%	13.53%	-6.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.78%	10.06%	-4.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.78%	10.06%	-4.28%

LALT vs. ARP - Expense Ratio Comparison

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

Dividends

LALT vs. ARP - Dividend Comparison

LALT's dividend yield for the trailing twelve months is around 3.68%, less than ARP's 5.86% yield.

Position	TTM	2025	2024	2023	2022
ARP Pmv Adaptive Risk Parity ETF	5.86%	6.54%	5.29%	2.67%	0.06%
LALT First Trust Multi-Strategy Alternative ETF	3.68%	2.03%	2.06%	2.44%	0.00%

Frequently Asked Questions

Can I hold both LALT and ARP in my portfolio?

LALT and ARP 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, LALT or ARP?

ARP has higher volatility (2.95%) compared to LALT (1.23%). In terms of maximum drawdown, LALT dropped -6.97% vs ARP's -10.13%.

Which ETF is better, LALT or ARP?

On 3-year performance, ARP leads with 15.46% vs 10.48% for LALT. On fees, ARP is cheaper at 1.42% per year. On volatility, LALT has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LALT or ARP?

Over the 3-year period, ARP has performed better with a 15.46% return vs 10.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LALT or ARP?

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

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

ARP has the higher dividend yield at 5.86%, compared with 3.68% for LALT.

What is the main difference between LALT and ARP?

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

Which has better risk-adjusted returns?

LALT currently has the higher Sharpe Ratio (3.28 vs 2.06), 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.