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Upturn AI SWOT - About
First Trust Alternative Absolute Return Strategy ETF (FAAR)
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Upturn Advisory Summary
10/24/2025: FAAR (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit -4.43% | Avg. Invested days 44 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/24/2025 |
Key Highlights
Volume (30-day avg) - | Beta 0.21 | 52 Weeks Range 25.03 - 30.74 | Updated Date 06/29/2025 |
52 Weeks Range 25.03 - 30.74 | Updated Date 06/29/2025 |
Upturn AI SWOT
First Trust Alternative Absolute Return Strategy ETF
ETF Overview
Overview
The First Trust Alternative Absolute Return Strategy ETF (FARO) seeks total return, primarily through income and capital appreciation. It employs a multi-strategy approach, allocating assets across various alternative investment strategies, including managed futures, global macro, and event-driven strategies.
Reputation and Reliability
First Trust is a well-established ETF provider known for its innovation and a broad range of investment products.
Management Expertise
First Trust has a dedicated team experienced in managing alternative investment strategies and ETFs.
Investment Objective
Goal
To achieve total return through income and capital appreciation, focusing on absolute returns regardless of market conditions.
Investment Approach and Strategy
Strategy: The ETF uses a fund-of-funds approach, investing in other ETFs that implement various alternative strategies.
Composition The ETF holds a mix of other ETFs specializing in managed futures, global macro, event-driven, and other alternative investment strategies.
Market Position
Market Share: FARO's market share within the alternative strategies ETF category is relatively small.
Total Net Assets (AUM): 27310000
Competitors
Key Competitors
- QAI
- BTAL
- HDGE
- LALT
Competitive Landscape
The alternative ETF space is competitive, with many funds vying for investor attention. FARO's advantage lies in its multi-strategy approach, while its disadvantage may be its relatively small AUM compared to larger competitors. QAI has a much larger market share.
Financial Performance
Historical Performance: Historical performance data is available in the linked PDF. Returns depend on the individual portfolio allocations. 5-year annualized return is 1.35%.
Benchmark Comparison: Because of its absolute return focus, comparing FARO to a traditional benchmark like the S&P 500 is not appropriate.
Expense Ratio: 0.95
Liquidity
Average Trading Volume
FARO's average trading volume is relatively low, which could impact execution costs for larger trades.
Bid-Ask Spread
The bid-ask spread can fluctuate and should be considered before placing orders.
Market Dynamics
Market Environment Factors
Economic uncertainty, interest rate changes, and geopolitical events can all influence the performance of FARO's underlying alternative strategies.
Growth Trajectory
FARO's growth depends on investor demand for alternative investment strategies and its ability to deliver consistent, uncorrelated returns.
Moat and Competitive Advantages
Competitive Edge
FARO's multi-strategy approach offers diversification within the alternative investment space. It provides access to various strategies through a single ETF, simplifying portfolio construction. The fund of funds structure benefits from the expertise of multiple managers. However, fees are incurred at each level.
Risk Analysis
Volatility
FARO's volatility will vary depending on the specific strategies and allocations within the portfolio. Expect periods of low correlation with market indices.
Market Risk
The underlying alternative strategies carry their own specific risks, including market risk, liquidity risk, and manager risk.
Investor Profile
Ideal Investor Profile
FARO is suitable for sophisticated investors seeking to diversify their portfolios with alternative investment strategies and reduce correlation with traditional asset classes.
Market Risk
FARO may be suitable for long-term investors seeking diversification and absolute returns, but its complexity requires careful consideration.
Summary
First Trust Alternative Absolute Return Strategy ETF (FARO) offers exposure to a diversified set of alternative investment strategies through a fund-of-funds approach. It aims to deliver absolute returns regardless of market conditions, making it potentially attractive for investors seeking portfolio diversification and lower correlation with traditional assets. However, investors should carefully consider the higher expense ratio and the complexities inherent in alternative investments. Due diligence is important to understand the risks and strategies within the fund.
Peer Comparison
Sources and Disclaimers
Data Sources:
- First Trust Website
- ETFdb.com
- Morningstar
- etf.com
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust Alternative Absolute Return Strategy ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund is an actively managed exchange-traded fund that seeks to achieve long-term total return through long and short investments in exchange-traded commodity futures contracts (Commodity Futures) through a wholly-owned subsidiary of the fund organized under the laws of the Cayman Islands (the Subsidiary). It does not invest directly in Commodity Futures. The advisor gains exposure to these investments exclusively by investing in the Subsidiary. The Subsidiary is advised by First Trust Advisors L.P., the fund's investment advisor.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.