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ETFs

First Trust Exchange-Traded Fund VII First Trust Alternative Absolute Return Strategy ETF

FAAR
$--
Today’s Change
-- (--)

Snapshot
*

Inception Date
May 18 2016
Expense Ratio
0.95%
Type
Global Commodities & Metals
Fund Owner
First Trust
Volume (1m avg. daily)
$828,339
AUM
$197,405,060
Associated Index
None
Inverse/Leveraged
No
Passive/Active
Active
Fractionable on Composer
Yes
Prospectus
View

Top 10 Holdings

n/a
Derivatives offset
57.21%
n/a
US Dollar
48.89%
n/a
U.S. Treasury Bill 0% due 04/04/2023
13.66%
n/a
U.S. Treasury Bill 0% due 03/30/2023
10.12%
n/a
U.S. Treasury Bill 0% due 03/21/2023
7.60%
n/a
U.S. Treasury Bill 0% due 03/28/2023
7.59%
n/a
U.S. Treasury Bill 0% due 03/23/2023
6.08%
n/a
U.S. Treasury Bill 0% due 04/06/2023
6.07%
Invest with FAAR

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.

ETFs related toFAAR

ETFs correlated to FAAR include SOYB, FTGC, USCI

FAAR
First Trust Exchange-Traded Fund III - First Trust Alternative Absolute Return Strategy ETF
SOYB
Teucrium Trading, LLC - Teucrium Soybean Fund
FTGC
First Trust Exchange-Traded Fund III - First Trust Global Tactical Commodity Strategy Fund
USCI
United States Commodity Funds LLC - United States Commodity Index Fund
COMT
BlackRock Institutional Trust Company N.A. - iShares GSCI Commodity Dynamic Roll Strategy ETF
PDBC
Invesco Capital Management LLC - Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF
DBC
DB Commodity Services LLC - Invesco DB Commodity Index Tracking Fund
GSG
BlackRock Institutional Trust Company N.A. - iShares S&P GSCI Commodity-Indexed Trust
BCI
abrdn ETF - abrdn Bloomberg All Commodity Strategy K-1 Free ETF
GCC
WisdomTree Commodity Services LLC - WisdomTree EnhancedContinuous Commodity Index Fund
COMB
GraniteShares Gold Trust - GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF

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.

Automated Strategies
Related toFAAR

#DALIO

The Dalio

Category

Classic

Risk Rating

Conservative

#GLOMO

On Top of the World: Global Momentum

Category

Momentum, Lever Up, Go Global

Risk Rating

Moderate

Create your own algorithmic trading strategy with FAAR using Composer

FAQ

FAAR is a Global Commodities & Metals ETF. 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.

Yes, FAAR is actively managed. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.

No, FAAR is not passively managed. It is actively managed. A passively managed fund typically tries to track or follow a market index. In an actively managed fund, the fund manager makes decisions about how funds are invested.

The 1-month return on FAAR is 0.0114%. This is the percent change in the value of FAAR over the most recent 1-month period. The 3-month return on FAAR is 0.0392%. This is the percent change in the value of FAAR over the most recent 3-month period.

The standard deviation of FAAR for the past year is 0.1211%. Standard deviation is the typical amount that the daily returns vary from the mean of the returns over the time period, standardized to a period of a year.

ETFs similar to FAAR include CMDY, UCIB, and BCD.

ETFs correlated to FAAR include SOYB, FTGC, and USCI.

ETFs that are inversely correlated to FAAR include SCO, SURI, and ERY.

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.