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FAAR vs LMBS
First Trust Alternative Absolute Return Strategy ETF vs First Trust Low Duration Opportunities ETF
Key differences
FAAR is an alternative ETF, while LMBS is a fixed income ETF. FAAR charges 0.98% a year and LMBS 0.66%.
- FAAR is an alternative fund, while LMBS is a fixed income fund. They carry different risk/return profiles.
- FAAR follows a long short strategy; LMBS uses index tracking.
- LMBS costs 0.32% less per year.
- LMBS 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
| FAAR | LMBS | |
|---|---|---|
| Annual cost (TER) | 0.98% | 0.66% |
| Fund size (AUM) | $176M | $6.3B |
| Since | 2016 | 2014 |
| Dividend yield | 9.19% | 4.10% |
| Asset class | alternative | fixed income |
| Region | north america | north america |
| Strategy | long short | index tracking |
| CAGR 1Y | +33.2% | +5.9% |
| CAGR 3Y | +11.1% | +5.8% |
| CAGR 5Y | +7.4% | +3.1% |
| Sharpe 3Y | 0.67 | 0.83 |
| Volatility 1Y | 13.49% | 1.94% |
| Max drawdown | -18.03% | -6.48% |
Beyond the comparison: Beacon helps you build, track, and project a portfolio with the ETFs you pick.