FAAR ETF — First Trust Alternative Absolute Return Strategy ETF

First Trust Alternative Absolute Return Strategy ETF (FAAR)

Updated October 16, 2026.

FAAR is an ETF. its distribution rate is 1.67%, its trailing-12-month yield is 9.27%, its expense ratio is 0.98%. Dividend Vision Distribution Safety Score™ is 57/100 (Caution). Total return is 61.1% over the past 10.4 years, 278.9 points behind SPY at 340.0%.

First Trust Alternative Absolute Return Strategy ETF is an actively managed ETF that seeks long-term total return through long and short positions in exchange-traded commodity futures contracts, accessed via a Cayman Islands subsidiary. The fund carries a modest current distribution rate and pays distributions quarterly, with an expense ratio of 0.98%. It appeals to investors seeking alternative strategies and potential diversification through commodity exposure rather than traditional equity or bond holdings.

FAAR performance versus SPY

Price and return data through 2026-10-16.

Total return is 61.1% over the past 10.4 years, 278.9 points behind SPY at 340.0%. Over the past year its total return — price change plus distributions reinvested — is 20.5%. Its deepest 1-year drawdown was 10.6%.

FAAR key facts

Distribution Safety Score™

57 · Caution

Safety-Adjusted Yield

0.95%

Issuer

First Trust

Asset type

ETF

Asset class

Equity

Inception date

05/18/2016

Expense ratio

0.98%

Distribution rate

1.67%

Distribution frequency

Quarterly

Trailing yield

9.27%

Last close

$32.78 (as of 2026-10-16)

AUM

$248,125,696

Average volume

38256.0

Dividend

$0.137

Ex-dividend date

09/24/2026

Payment date

09/30/2026

Beta

0.54

How Dividend Vision calculates yield and returns

Distribution rate (1.67%) uses calculation basis unavailable. Issuer rates can use a different denominator and date, including ex-date NAV. Trailing-12-month yield (9.27%) is the sum of split-adjusted cash distributions with ex-dates in the last 12 months, divided by the published price. It lags a recent raise or cut. Total return uses split-adjusted close with distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date) from the first stored bar on or after inception through the latest bar, compared with the same window on the benchmark. That is the security's total return, not your personal gain/loss.

Yield and safety methodology · Distribution rate methodology · Distribution Safety Score methodology

Sources and review

Primary sources: First Trust or company page; prices and distributions from Dividend Vision, derived from vendor EOD data.

Reviewed by Bert Sweet, CEO and Co-owner of Dividend Vision. Methodology: Distribution Safety Score.

FAAR risks and drawbacks

FAAR's current distribution rate is moderate, not a high-yield payout — the strategy is dividend quality more than maximum income. Payments are quarterly, so cash flow is lumpy versus a monthly fund. Total return has trailed SPY over the available window. The deepest 1-year drawdown on record here is 10.6%.

Who may consider FAAR — and who may not

It is a weaker fit for investors who need monthly cash flow (FAAR pays quarterly); investors hunting double-digit covered-call yields; investors whose main goal is matching SPY total return. This is educational context, not a recommendation to buy or sell.

More on FAAR

• All tickers starting with F

Frequently asked questions

More securities from First Trust.