Symbols

FAAR

First Trust Alternative Absolute Return Strategy ETF·NASDAQ

--(--)

Key Stats

Assets Under Management

174.40MUSD

Fund Flow (1Y)

50.47MUSD

Dividend Yield

9.25%

Discount / Premium to NAV

0.20%

Shares Outstanding

5.20M

Expense Ratio

0.97%

About First Trust Alternative Absolute Return Strategy ETF

Issuer

First Trust Advisors L.P.

Brand

First Trust

Home Page

https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FAAR

Inception Date

May 18, 2016

Structure

Open-Ended Fund

Index Tracked

Management Style

Active

Dividend Treatment

Distributes

Distribution Tax Treatment

Ordinary income

Income Tax Type

Capital Gains

Max ST Capital Gains Rate

39.60%

Max LT Capital Gains Rate

20.00%

Primary Advisor

First Trust Portfolios LP

Distributor

First Trust Portfolios LP

FAAR's active manager (First Trust Advisors) has broad leeway to execute the fund's long/short commodities strategy: the fund may go long or short any exchange-traded commodity futures contract, and take a net-long, net-short, or neutral stance. The fund may also hold cash and equivalents (including US Treasurys with up to five years to maturity), both as collateral for its futures investments and as a safe haven. FAAR doesn't own futures directly, but rather through its holdings in a Cayman Islands subsidiary—an arrangement that allows it to be structured as an open-ended fund under the 1940 Act, and avoid a K-1 at tax time.