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LMBS vs FAAR

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

LMBS

First Trust Low Duration Opportunities ETF

Annual cost

0.66%

Fund size

$6.3B

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

Key differences

LMBS is a fixed income ETF, while FAAR is an alternative ETF. LMBS charges 0.66% a year and FAAR 0.98%.

  • LMBS is a fixed income fund, while FAAR is an alternative fund. They carry different risk/return profiles.
  • LMBS follows a index tracking strategy; FAAR uses long short.
  • 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

LMBSFAAR
Annual cost (TER)0.66%0.98%
Fund size (AUM)$6.3B$176M
Since20142016
Dividend yield4.10%9.19%
Asset classfixed incomealternative
Regionnorth americanorth america
Strategyindex trackinglong short
CAGR 1Y+5.9%+33.2%
CAGR 3Y+5.8%+11.1%
CAGR 5Y+3.1%+7.4%
Sharpe 3Y0.830.67
Volatility 1Y1.94%13.49%
Max drawdown-6.48%-18.03%

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

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