First Trust Multi-Strategy Alternative ETF

Frequently Asked Questions About LALT

What does LALT invest in?

The First Trust Multi-Strategy Alternative ETF (LALT) is designed to achieve the primary goal of generating overall long-term returns. This actively managed exchange-traded fund strives towards its investment objective by strategically distributing its capital among a wide variety of non-traditional asset classes and investment approaches. The intention behind this strategy is to provide investors with diminished correlation and broader risk diversification when measured against standard equity and fixed income benchmarks, like the S&P 500 Index or the Bloomberg Aggregate Bond Index, aiming for consistent performance through diverse economic conditions.

What is the expense ratio of LALT?

First Trust Multi-Strategy Alternative ETF (LALT) charges an expense ratio of 0.20%. This is the annual fee deducted from fund assets to cover management and operations.

What is LALT's dividend yield?

LALT's trailing-twelve-month yield is 4.01%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of LALT?

Effective duration measures LALT's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. LALT's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of LALT?

LALT's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of LALT?

Yield to maturity (YTM) is the total return you'd earn from LALT if every bond in the portfolio is held to maturity at the current price. LALT's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.