First Trust Alternative Absolute Return Strategy ETF (FAAR) Fund Overview
Educational signal · not a buy or sell recommendation · How to read this
Beta 0.40: the stock has moved about 60% less than the S&P 500.
For informational purposes only. Not financial advice. Machine-generated analysis by Stock Expert AI — model gemini-2.0-flash, generated Mar 17, 2026. Editorial oversight is systemic, not page-by-page. Editorially accountable: Sedat ANAK, Founder and Editor-in-Chief. Data sources: Financial Modeling Prep, Yahoo Finance, SEC EDGAR
Quick AnswerFirst Trust Alternative Absolute Return Strategy ETF (FAAR) trades at $32.27. The First Trust Alternative Absolute Return Strategy ETF is an actively managed fund seeking long-term total return. Sector: Financials.
Price as of · Last analyzed: Mar 17, 2026Analyst Coverage for FAAR: FAAR does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage.
First Trust Alternative Absolute Return Strategy ETF (FAAR) Financial Services Profile
First Trust Alternative Absolute Return Strategy ETF (FAAR) is an actively managed ETF aiming for long-term total return through alternative investment strategies. Operating in the asset management sector, it offers investors exposure to a diversified portfolio with a focus on absolute return, distinguishing itself through active management in a competitive ETF landscape.
What Is the Investment Thesis for FAAR?
The investment thesis for First Trust Alternative Absolute Return Strategy ETF (FAAR) centers on its active management approach and its objective of delivering long-term total return. With a market capitalization of $0.12 billion and a beta of 0.40, FAAR presents a relatively low-volatility investment option within the asset management sector. Key value drivers include the fund's ability to generate alpha through strategic asset allocation and active trading strategies. Growth catalysts include increasing investor demand for alternative investment solutions and the potential for FAAR to outperform traditional asset classes in various market environments. However, potential risks include the higher management fees associated with active management and the possibility of underperformance relative to passive benchmarks. The fund's success hinges on the skill and expertise of its investment management team in navigating market complexities and generating consistent returns.
Based on FMP financials and quantitative analysis
FAAR Key Highlights
Actively managed ETF seeking long-term total return.
- Market capitalization of $0.12 billion indicates a relatively small fund size.
- Beta of 0.40 suggests lower volatility compared to the broader market.
- Operates within the asset management industry, offering exposure to alternative investment strategies.
- No dividend yield, focusing instead on capital appreciation.
Who Are FAAR's Competitors?
FAAR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | MoonshotScore |
|---|---|---|---|---|
| ECOW Pacer Emerging Markets Cash Cows 100 ETF | $26.77 | +0.14% | $152M | — |
| EETH ProShares - Ether ETF | $32.38 | -0.67% | $77.6M | — |
| EVIM Eaton Vance Intermediate Municipal Income ETF | $50.34 | -0.20% | $106M | — |
| FVC First Trust Dorsey Wright Dynamic Focus 5 ETF | $42.92 | -0.38% | $122M | — |
| GLIN VanEck India Growth Leaders ETF | $43.02 | +0.07% | $93.1M | — |
| BLK BlackRock, Inc. | $1079.42 | +1.22% | $167B | 51 5-pillar |
| BX Blackstone Inc. | $113.36 | +1.54% | $137B | 66 5-pillar |
| APOS Apollo Global Management, Inc. | $25.60 | +0.04% | $74.9B | 56 5-pillar |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FAAR's Key Strengths?
Active management strategy.
- Focus on long-term total return.
- Diversified investment approach.
- Lower volatility compared to the broader market (beta of 0.40).
What Are FAAR's Weaknesses?
Higher management fees compared to passive ETFs.
- Potential for underperformance relative to benchmarks.
- Relatively small market capitalization ($0.12 billion).
- Dependence on the expertise of the investment management team.
What Are the Key Risks for FAAR?
Higher management fees associated with active management.
- Underperformance relative to passive benchmarks.
- Changes in market conditions and economic outlook affecting investment performance.
- Regulatory changes impacting the ETF industry.
What Threats Does FAAR Face?
- Increased competition from other asset management firms.
- Changes in market conditions and economic outlook.
- Regulatory changes affecting the ETF industry.
- Potential for market downturns and volatility.
What Are FAAR's Competitive Advantages?
- Active management expertise.
- Established track record.
- Diversified investment strategies.
What Does FAAR Do?
The First Trust Alternative Absolute Return Strategy ETF (FAAR) is an actively managed exchange-traded fund designed to provide investors with long-term total return. Unlike passively managed ETFs that track a specific index, FAAR employs active management strategies to navigate market fluctuations and generate returns. The ETF invests in a variety of asset classes and employs different investment techniques to achieve its objective. The fund's approach involves identifying opportunities across various market segments and adjusting its portfolio based on prevailing market conditions and economic outlook. FAAR aims to deliver consistent, positive returns regardless of the overall market direction. The ETF's investment strategy is geared towards investors seeking diversification and potential downside protection. FAAR's active management seeks to capitalize on market inefficiencies and generate alpha, which is return above a specified benchmark. This approach differentiates it from traditional index-tracking ETFs and other passively managed investment vehicles. The fund's performance is closely tied to the expertise and decision-making of its investment management team.
What Products and Services Does FAAR Offer?
- Actively manages an exchange-traded fund (ETF).
- Seeks long-term total return for investors.
- Employs alternative investment strategies.
- Invests in a variety of asset classes.
- Adjusts portfolio based on market conditions.
- Aims to deliver consistent, positive returns.
- Provides diversification benefits to investors.
How Does FAAR Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- Employs active management strategies to generate alpha.
- Offers diversification benefits to investors seeking alternative investments.
What Industry Does FAAR Operate In?
The First Trust Alternative Absolute Return Strategy ETF operates within the asset management industry, a segment of the financial services sector characterized by intense competition and evolving investor preferences. The industry is influenced by macroeconomic factors, regulatory changes, and technological advancements. The ETF market has experienced substantial growth in recent years, driven by the increasing popularity of passive investment strategies and the demand for diversified investment solutions. FAAR's active management approach differentiates it from the majority of passively managed ETFs, positioning it to capitalize on market inefficiencies and generate alpha. Competitors include other asset management firms offering similar alternative investment strategies.
Who Are FAAR's Key Customers?
- Retail investors seeking diversification.
- Financial advisors looking for alternative investment options.
- Institutional investors seeking long-term total return.
Research confidence
Thin evidence — scoring coverage unknown. Treat this as a starting point, not a conclusion.
- ● Scoring coverage unknown
- ● Price is current
- ● No filing on record
- ● No analyst coverage
- ● This is an etf, not an operating company
MoonshotScore History
Recorded daily since 2026-08-23 · 43 snapshots
| 2026-08-23 | 50 |
| 2026-08-31 | 50 |
| 2026-09-08 | 50 |
| 2026-09-16 | 50 |
| 2026-09-24 | 50 |
| 2026-10-04 | 50 |
| 2026-10-06 | 50 |
What changed?
The score has stayed at 50.
Over the same 30 days the stock moved +2.3%.
FAAR Financials
Bull Case vs Bear Case
Bull Case
- Active management strategy.
- Focus on long-term total return.
- Diversified investment approach.
- Lower volatility compared to the broader market (beta of 0.40).
Bear Case
- Higher management fees compared to passive ETFs.
- Potential for underperformance relative to benchmarks.
- Relatively small market capitalization ($0.12 billion).
- Dependence on the expertise of the investment management team.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FAAR Latest News
No recent news available for FAAR.
FAAR Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations collected by Financial Modeling Prep for FAAR.
Price Targets
Wall Street price target analysis for FAAR.
FAAR MoonshotScore
MoonshotScore is Stock Expert AI's proprietary 0-100 research rating, not a buy or sell recommendation. No MoonshotScore is published for FAAR; grades run from A+ (80-100) to F (below 30).
ETFs that hold FAAR
Funds in our ETF coverage that list FAAR among the top 10 holdings on their fund page, largest weight first. Each weight is the fund's reported holding weight as of the date in its row.
| ETF | Weight | Holdings as of |
|---|---|---|
| LALT ETF | 22.38% |
FAAR Financials Stock FAQ
What are the main risks for FAAR?
The main risks for FAAR include the higher management fees associated with active management, which can erode returns if the fund underperforms its benchmark.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
MoonshotScore is not published for this security.
Data provided for informational purposes only.
- Financial data based on available information as of 2026-03-17.