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FAAR vs LGOV

First Trust Alternative Absolute Return Strategy ETF vs First Trust Long Duration Opportunities ETF

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

LGOV

First Trust Long Duration Opportunities ETF

Annual cost

0.49%

Fund size

$664M

Key differences

FAAR is an alternative ETF, while LGOV is a fixed income ETF. FAAR charges 0.98% a year and LGOV 0.49%.

  • FAAR is an alternative fund, while LGOV is a fixed income fund. They carry different risk/return profiles.
  • FAAR follows a long short strategy; LGOV uses index tracking.
  • LGOV costs 0.49% less per year.
  • LGOV is much larger than FAAR. Larger funds are usually more liquid and less likely to close.
  • Over the last three years, FAAR has delivered higher annualized returns.

Side-by-side comparison

FAARLGOV
Annual cost (TER)0.98%0.49%
Fund size (AUM)$176M$664M
Since20162019
Dividend yield9.19%4.25%
Asset classalternativefixed income
Regionnorth americanorth america
Strategylong shortindex tracking
CAGR 1Y+33.2%+5.5%
CAGR 3Y+11.1%+2.8%
CAGR 5Y+7.4%-1.7%
Sharpe 3Y0.67-0.04
Volatility 1Y13.49%7.02%
Max drawdown-18.03%-30.85%

Beyond the comparison: Beacon helps you build, track, and project a portfolio with the ETFs you pick.

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