FAAR Profile
The First Trust Alternative Absolute Return Strategy ETF (FAAR) operates as an actively managed exchange-traded fund focused on generating long-term total returns. Launched by First Trust on May 18, 2016, FAAR primarily invests in multi-strategy alternatives, emphasizing a diversified approach to investing across various asset classes. The fund's investment strategy includes employing long and short positions in exchange-traded commodity futures contracts, facilitated through a subsidiary dedicated to managing these exposures.
FAAR aims to capitalize on market inefficiencies and opportunities across commodity futures markets, leveraging its actively managed structure to adjust positions dynamically in response to evolving market conditions. The ETF's strategy seeks to enhance returns through tactical allocation and risk management techniques, aiming to achieve consistent performance over the long term. FAAR's approach is underpinned by rigorous research and analysis, enabling the fund to identify potential sources of alpha within the commodity futures landscape.
First Trust implements a disciplined investment process to navigate the complexities of alternative investments, focusing on delivering alpha while managing risks effectively. FAAR's active management allows flexibility in adjusting its portfolio composition to optimize risk-adjusted returns and capitalize on market trends. The fund's launch underscores First Trust's commitment to offering innovative investment solutions tailored to meet the diverse needs of investors seeking exposure to alternative strategies.
As part of First Trust's suite of ETF offerings, FAAR aims to appeal to investors looking to diversify their portfolios and potentially enhance returns through exposure to alternative asset classes. Since inception, FAAR has positioned itself as a strategic choice for investors seeking to navigate market volatility and capitalize on opportunities presented by commodity futures markets. Through its specialized focus and proactive investment approach, FAAR aims to deliver value while navigating the dynamic landscape of alternative absolute return strategies.
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