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LMBS vs FAAR
First Trust Low Duration Opportunities ETF vs First Trust Alternative Absolute Return Strategy ETF
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
| LMBS | FAAR | |
|---|---|---|
| Annual cost (TER) | 0.66% | 0.98% |
| Fund size (AUM) | $6.3B | $176M |
| Since | 2014 | 2016 |
| Dividend yield | 4.10% | 9.19% |
| Asset class | fixed income | alternative |
| Region | north america | north america |
| Strategy | index tracking | long short |
| CAGR 1Y | +5.9% | +33.2% |
| CAGR 3Y | +5.8% | +11.1% |
| CAGR 5Y | +3.1% | +7.4% |
| Sharpe 3Y | 0.83 | 0.67 |
| Volatility 1Y | 1.94% | 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.