(FAAR) Alternative Absolute Return - Overview
Etf: Commodity, Futures, Long, Short, Subsidiary
Dividends
| Dividend Yield | 11.62% |
| Yield on Cost 5y | 10.91% |
| Yield CAGR 5y | 14.01% |
| Payout Consistency | 85.4% |
| Payout Ratio | - |
| Risk 5d forecast | |
|---|---|
| Volatility | 13.3% |
| Relative Tail Risk | -1.68% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.76 |
| Alpha | 7.24 |
| Character TTM | |
|---|---|
| Beta | 0.281 |
| Beta Downside | 0.512 |
| Drawdowns 3y | |
|---|---|
| Max DD | 11.54% |
| CAGR/Max DD | 0.44 |
Description: FAAR Alternative Absolute Return January 25, 2026
The First Trust Alternative Absolute Return Strategy ETF (FAAR) is an actively managed U.S. ETF that seeks long-term total return by taking long and short positions in exchange-traded commodity futures via a Cayman-registered subsidiary; the fund itself never holds the futures contracts directly, relying on the subsidiary’s exposure.
Key current metrics (as of 30 Nov 2024):
• Expense ratio = 0.68% (higher than passive commodity ETFs, reflecting active management costs).
• Assets under management ≈ $125 million, down 12% YoY amid broader outflows from commodity-focused funds.
• 12-month rolling return ≈ -3.2%, underperforming the Bloomberg Commodity Index (+2.1%) but showing lower volatility (σ ≈ 9% vs 13% for the index).
• Top sector exposures via the subsidiary: Energy futures (≈ 38% net), Industrial metals (≈ 27%), Agricultural commodities (≈ 22%).
Economic backdrop: commodity-futures performance is currently driven by three macro factors-persistent inflation pressures that keep real yields low, geopolitical tensions that elevate energy price volatility, and tightening global supply chains that affect metal and grain inventories. A shift in Fed policy toward higher rates could compress futures-based returns by raising financing costs for leveraged positions.
Given these dynamics, a data-centric review of FAAR’s risk-adjusted performance and sector tilt is advisable; for a deeper quantitative breakdown, you might explore ValueRay’s analytics platform.
What is the price of FAAR shares?
Over the past week, the price has changed by -0.77%, over one month by +6.96%, over three months by +6.29% and over the past year by +14.91%.
Is FAAR a buy, sell or hold?
What are the forecasts/targets for the FAAR price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | - | - |
| Analysts Target Price | - | - |
| ValueRay Target Price | 33.2 | 13.6% |
FAAR Fundamental Data Overview February 02, 2026
EBIT TTM = 0.0 USD
EBITDA TTM = 0.0 USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = unknown
Net Debt = unknown
Enterprise Value = 137.0m USD (137.0m + (null Debt) - (null CCE))
Interest Coverage Ratio = unknown (Ebit TTM 0.0 / Interest Expense TTM 0.0)
EV/FCF = unknown (FCF TTM 0.0)
FCF Yield = 0.0% (FCF TTM 0.0 / Enterprise Value 137.0m)
FCF Margin = unknown (Revenue TTM is 0 or missing)
Net Margin = unknown
Gross Margin = unknown ((Revenue TTM 0.0 - Cost of Revenue TTM 0.0) / Revenue TTM)
Tobins Q-Ratio = unknown (Enterprise Value 137.0m / Total Assets none)
Interest Expense / Debt = unknown (Interest Expense 0.0 / Debt none)
Taxrate = 21.0% (US default 21%)
NOPAT = 0.0 (EBIT 0.0 * (1 - 21.00%))
Current Ratio = unknown (Total Current Assets none / Total Current Liabilities none)
Debt / Equity = unknown (Debt none)
Debt / EBITDA = unknown (Net Debt none / EBITDA 0.0)
Debt / FCF = unknown (Net Debt none / FCF TTM 0.0)
Total Stockholder Equity = 0.0 (from calculated bookValueOfEquity)
RoA = unknown (Net Income 0.0 / Total Assets none)
RoE = unknown (Net Income TTM 0.0 / Total Stockholder Equity 0.0)
RoCE = unknown (EBIT 0.0 / Capital Employed )
RoIC = unknown (NOPAT 0.0, Invested Capital 0.0, EBIT 0.0)
WACC = 6.95% (E(137.0m)/V(137.0m) * Re(6.95%) + (debt-free company))
Discount Rate = 6.95% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Fair Price DCF = unknown (Cash Flow 0.0)