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FAAR vs LMBS

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

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

LMBS

First Trust Low Duration Opportunities ETF

Annual cost

0.66%

Fund size

$6.3B

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

FAARLMBS
Annual cost (TER)0.98%0.66%
Fund size (AUM)$176M$6.3B
Since20162014
Dividend yield9.19%4.10%
Asset classalternativefixed income
Regionnorth americanorth america
Strategylong shortindex tracking
CAGR 1Y+33.2%+5.9%
CAGR 3Y+11.1%+5.8%
CAGR 5Y+7.4%+3.1%
Sharpe 3Y0.670.83
Volatility 1Y13.49%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.

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