First Trust Exchange-Traded Fund VII First Trust Alternative Absolute Return Strategy ETF
Snapshot*
Top 10 Holdings
What is FAAR?
The First Trust Alternative Absolute Return Strategy ETF is an actively managed exchange-traded fund that seeks to provide investors with long-term total return. The Fund is an actively managed exchange-traded fund that seeks to achieve long-term total return through long and short invest-ments in exchange-traded commodity futures contracts ( Commodity Futures ) through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary ). The Fund will not invest directly in Commodity Futures. The Fund expects to gain exposure to these investments exclusively by investing in the Subsidiary. The Subsidiary is advised by First Trust Advisors L.P., the Fund s investment advisor. The Fund s investment in the Subsidiary is intended to provide the Fund with exposure to commodity markets within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in Commodity Futures. The Subsidiary has the same investment objective as the Fund, but unlike the Fund, it may invest without limitation in Commodity Futures. Except as otherwise noted, for purposes of this prospectus, refer-ences to the Fund s investments include the Fund s indirect investments through the Subsidiary. The Fund will invest up to 25% of its total assets in the Subsidiary.
FAARPerformance Measures**
for the time period May 23, 2016 to Aug 5, 2026
1M Trailing Return: -2.3%
The percent change in the value over the most recent 1-month period.
3M Trailing Return: -9.2%
The percent change in the value over the most recent 3-month period.
Max Drawdown: -18.0%
The greatest percent loss from peak to trough in value over the time period.
Standard Deviation: 11.5%
The typical amount that daily returns vary from the mean of the returns over the time period, standardized to a period of a year.
Sharpe Ratio: 0.41
The annualized arithmetic mean of the daily returns divided by the annualized standard deviation of the daily returns for the selected time period.
Calmar Ratio: 0.23
The annualized return divided by the max drawdown for the selected time period.
ETFs related toFAAR
ETFs correlated to FAAR include TSLR, XAUG, GAUG
What is ETF correlation?
Correlation is a measure of the strength of the relationship between two ETFs. It quantifies the degree to which prices of the two ETFs typically move together.
Here, correlation is measured over the past year with the Pearson correlation coefficient (Pearon’s r), which ranges from -1 to 1.
Using ETF correlations in portfolio and strategy construction
ETF correlations can help you create investing strategies and portfolios. Use them to:
- •Build a diversified portfolio from uncorrelated or inversely correlated ETFs with the aim of minimizing portfolio risk.
- •Compare correlated or related ETFs to find one with a lower expense ratio or higher trading volume.
- •Create an investing strategy that hedges an ETF with an uncorrelated or inversely correlated ETF.
Trading Strategies
Related toFAAR
C-DTMS (Longer Backtest Mod) - 24May2019
Category
Tactical allocation, leveraged ETFs, sector rotation, trend-following, mean reversion, volatility hedging, bonds, commodities, managed futures
OOS Cumulative Return
372.47%
Michael B Meets Dalio w/ Pop Bots 2.1.0
Category
Tactical asset allocation, trend following, momentum, all-weather, volatility targeting, leveraged ETFs, managed futures, crash hedging, multi-asset
OOS Cumulative Return
199.07%
Create your own algorithmic trading strategy with FAAR using Composer
FAQ
Disclaimers
We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.
We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.