About First Trust Alternative Absolute Return Strategy ETF (FAAR)

First Trust Alternative Absolute Return Strategy ETF (FAAR) is an exchange-traded fund that seeks to provide positive total returns across various market cycles. The fund's investment objective is to seek risk-adjusted returns that are uncorrelated with traditional stock and bond markets. It aims to accomplish this by investing in a diverse range of alternative investment strategies, including long/short equity, global macro, managed futures, and event-driven strategies. By utilizing these alternative strategies, FAAR aims to deliver consistent returns with lower volatility compared to traditional equity investments.

FAAR offers investors an opportunity to diversify their portfolios and mitigate risk through exposure to non-traditional asset classes. The fund's approach is based on the belief that alternative strategies can provide attractive risk-adjusted returns and act as a source of alpha in a well-diversified portfolio. FAAR's investment philosophy is grounded in the idea that traditional asset allocation may not always be sufficient to achieve desired returns, particularly during times of market volatility or economic downturns. By incorporating alternative strategies, FAAR seeks to navigate various market conditions and generate positive returns for investors.