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MKAM vs FAAR

Mkam Etf vs First Trust Alternative Absolute Return Strategy ETF

MKAM

MKAM ETF

Annual cost

0.53%

Fund size

$13M

FAAR

First Trust Alternative Absolute Return Strategy ETF

Annual cost

0.98%

Fund size

$176M

Key differences

Both MKAM and FAAR are alternative ETFs. MKAM charges 0.53% a year and FAAR 0.98%. The main difference: MKAM follows a active selection strategy; FAAR uses long short.

  • MKAM follows a active selection strategy; FAAR uses long short.
  • MKAM costs 0.45% less per year.
  • FAAR is much larger than MKAM. Larger funds are usually more liquid and less likely to close.
  • Over the last three years, FAAR has delivered higher annualized returns.
  • FAAR has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

MKAMFAAR
Annual cost (TER)0.53%0.98%
Fund size (AUM)$13M$176M
Since20232016
Dividend yield2.90%9.19%
Asset classalternativealternative
Regionnorth americanorth america
Strategyactive selectionlong short
CAGR 1Y+11.8%+33.2%
CAGR 3Y+9.8%+11.1%
CAGR 5YN/A+7.4%
Sharpe 3Y0.960.67
Volatility 1Y6.24%13.49%
Max drawdown-5.01%-18.03%

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

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