First Trust Alternative Absolute Return Strategy ETF
FAAR
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- First Trust Alternative Absolute Return Strategy ETF (FAAR) is an actively managed exchange-traded fund that seeks long-term total return through a proprietary long/short commodities strategy; the fund invests primarily in exchange-listed commodity futures contracts across diverse sectors including energy, metals, agriculture, livestock, and precious metals, executed indirectly through a wholly-owned subsidiary organized under the laws of the Cayman Islands; it may also hold cash equivalents and U.S. Treasurys with up to five years to maturity as collateral or safe haven assets. FAAR selects futures based on open interest and trading volume, forecasts volatility and cross-correlations to construct optimized long/short portfolios, and evaluates futures curves to target highest potential returns, aiming to profit in various market environments while mitigating volatility and providing low correlation to traditional stocks, bonds, or long-only commodities. Launched on May 18, 2016, and listed on Nasdaq, the ETF is advised by First Trust Advisors L.P., headquartered in Wheaton, Illinois, with portfolio management led by John Gambla and Rob Guttschow; it operates globally across commodity markets with assets under management of approximately $110.89 million as of recent data and issues 1099 tax forms rather than K-1s. Recent developments include regular monthly distributions announced by First Trust Advisors L.P., such as those declared on December 10, 2025, and June 25, 2025; ongoing trustee elections and board appointments, including new Audit Committee roles announced on March 13, 2024, and upcoming elections noted on May 13, 2025; and increased institutional interest, evidenced by Flow Traders U.S. LLC acquiring 21,805 shares in Q2 2025 and TFB Advisors LLC boosting its position by 43% in Q1 2025. The fund maintains a focus on absolute return in the commodities broad basket category, targeting investors seeking diversification and downside protection during market stress without recent acquisitions, partnerships, or structural reorganizations reported.