FAAR: You Will Not Get Far Using This ETF

2026-05-23 10:23:31 ET

Thesis

With commodity markets on fire, we are going to explore a long-short commodities ETF today. The name of the fund is First Trust Alternative Absolute Return Strategy ETF ( FAAR ) , and it represents an actively managed ETF that seeks to provide investors with long-term total returns. As a long-short fund with an absolute return strategy, the ETF aims to make money both during bear and bull markets. The name discloses the following in its fact sheet:

Unlike traditional investment strategies, where returns are generally tied to the ups and downs of a single benchmark, absolute return strategies may produce positive returns in any market environment, independent of the market being up, down or flat. Absolute return strategies offer a potential strategy diversification benefit, that may help to achieve more consistent returns over time and reduce overall investment risk, but it does not guarantee a profit or protect against a loss.

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