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FAAR · First Trust Alternative Absolute Return Strategy ETF

Know the company

Company overview

First Trust Alternative Absolute Return Strategy ETF trades commodity-related futures and holds collateral for those positions. Its return depends on trading decisions across markets as well as the interest earned on collateral.

Business: Alternative-strategy ETF
Listing: FAAR · XNAS
Reporting period: 2026-06-30
Dividend schedule: Quarterly

How the business works

Collateral income after expenses contributes to net investment income. Futures gains or losses are separate and can have a larger effect on net asset value and any distribution.

First Trust Alternative Absolute Return Strategy ETF: financial report supporting reported earnings

Dividend & earnings snapshot

Dividend payments

Per common share

$0.1372Reviewed declaration · Payment Sep 30, 2026

Regular dividend

Announced Sep 23, 2026

Dates and issuer sources

Announcement: Sep 23, 2026
Declaration: Sep 23, 2026
Ex-dividend: Sep 24, 2026
Record: Sep 24, 2026
Payment: Sep 30, 2026
Source reviewed: Sep 28, 2026

Extras are shown separately and are not assumed to repeat.

Reported earnings

Each measure shown separately, per share

Net investment income$0.41

Jan 1, 2026 to Jun 30, 2026

Distribution yield9.62%Sourced distributions divided by dated market price

Reported annual income yield3.47%Reported net investment income $0.9400 per share for 2025-01-01 to 2025-12-31, divided by approved 2025-12-31 market price $27.1000. Excludes capital gains; historical, not a current yield or forecast.

Trailing 12-month distributions$3.08Recorded recurring payments per share, not a forecast

Reported-period income coverageNot availableReported net investment income and total distributions for the same period are needed.

Verified dividend dates and payment components

Issuer announcements supplement the recorded totals above. Each declared payment is shown separately. Additional payments are not assumed to repeat.

Regular dividend

$0.1372

Payment: Sep 30, 2026

Announced Sep 23, 2026

Dates and issuer sources

Announcement: Sep 23, 2026
Declaration: Sep 23, 2026
Ex-dividend: Sep 24, 2026
Record: Sep 24, 2026
Payment: Sep 30, 2026
Source reviewed: Sep 28, 2026

Verified earnings history and sources

The latest four recorded reporting periods. Each issuer measure keeps its own name and dates. These source records supplement the Fly High figures above; different measures are not added together or assumed comparable.

Reporting period	Earnings measure	Per share	Source
Jan 1, 2026 to Jun 30, 2026	Net investment income	$0.41	Issuer source 1 Announced Sep 3, 2026

Business and earnings charts

Financial snapshot: 2026-06-30. Research reviewed 2026-09-18. Source dates are retained with each measure; historical results are not a forecast.

The assets it owns

$216.025 million net assetsAlternative-strategy ETF

Net assets checked 2026-09-11. Borrowings and preferred financing are excluded from this net-assets figure.

A complete, comparable portfolio allocation is not available for this chart. No percentages have been estimated.

First Trust Alternative Absolute Return Strategy ETF: net assets and portfolio information, checked 2026-09-11

Reported earnings and distributions

2026-01-01 to 2026-06-30 · $ per share

Fund net investment income per common share; actual reporting period, not annualized$0.4100

Total cash distributions in the same period$0.2500

For the six months ended June 30, 2026, FAAR reported $0.41 of net investment income and $0.25 of distributions per share. Net asset value rose from $27.09 to $31.55. Income exceeded the cash paid, while the larger improvement in value shows why the futures result matters to the full return.

First Trust Alternative Absolute Return Strategy ETF: financial report supporting reported earnings

Cash distributions and reported returns

Cash distributions are the total paid per share during each reporting period, including any gains or return of capital. Period lengths may differ, so compare the dates before comparing amounts. Short periods are not annualized.

Reporting period	Ending NAV	NAV change	Distributions / share	Reported NAV total return	Source
Jan 1, 2026 to Jun 30, 2026	$31.55	+16.46%	$0.25	+17.37%	Verified issuer financial highlights for this exact fiscal period; total return is reported, not inferred.

NAV change excludes distributions. Reported NAV total return includes reinvestment and is copied from the fund statement, not estimated by adding cash distributions to the NAV change.

Reported-period income coverage

Reported net investment income divided by total distributions for each period. Investment gains and return of capital may also support payments, so this comparison alone does not establish distribution sustainability.

Reporting period	Net investment income/share	Total distributions/share	Income coverage
2024-01-01 to 2024-12-31	$1.13	$0.97	116.5%
2025-01-01 to 2025-12-31	$0.94	$3.15	29.8%
2026-01-01 to 2026-06-30	$0.41	$0.25	164.0%

Risk monitor

Risk	Current condition	Direction	Why it matters
Portfolio and strategy risk	Income and capital are exposed to futures positioning, commodity volatility and variable distribution amounts.	Monitor	A change can affect future distributions or shareholder capital.
Distribution variability	Payments can change and can include gains or return of capital. A high trailing yield does not establish earnings coverage or total return.	Monitor	A change can affect future distributions or shareholder capital.
Market and implementation risk	Market liquidity, trading costs, derivative execution where used, and fund expenses can reduce shareholder returns.	Monitor	A change can affect future distributions or shareholder capital.

The assets behind the earnings

How FAAR makes money

Financial snapshot: 2026-06-30. Research reviewed 2026-09-18. Source dates are retained with each measure; historical results are not a forecast.

The income-producing business

Portfolio interest and dividends, realized investment results and any derivative activity contribute to distribution resources after expenses. Taxable income and cash distributions can differ from reported net investment income.

The earnings available to shareholders depend on the cash generated by these activities after operating and financing costs. Portfolio gains, financing proceeds and recurring income should be evaluated separately.

First Trust Alternative Absolute Return Strategy ETF: financial report supporting reported earnings

What the reported earnings support

First Trust Alternative Absolute Return Strategy ETF reported $0.4100 per share for 2026-01-01 to 2026-06-30, measured as Fund net investment income per common share; actual reporting period, not annualized.

Actual per-share reporting period, without annualisation. Net investment income, realized gains, unrealized changes and cash distributions are different measures. This comparison is not the Fly High forward Dividend Coverage Ratio.

First Trust Alternative Absolute Return Strategy ETF: financial report supporting reported earnings

Portfolio and strategy risk

Income and capital are exposed to futures positioning, commodity volatility and variable distribution amounts.

Watch for changes in the underlying exposure and the next reported results before treating the current payment as evidence of continuing earnings support.

First Trust Alternative Absolute Return Strategy ETF: financial report supporting reported earnings

Distribution variability

Payments can change and can include gains or return of capital. A high trailing yield does not establish earnings coverage or total return.

Watch for changes in the underlying exposure and the next reported results before treating the current payment as evidence of continuing earnings support.

First Trust Alternative Absolute Return Strategy ETF: financial report supporting reported earnings

What would change the earnings picture?

Compare the next like-length collateral income and cash payment with realized futures results, strategy changes and net asset value.

Net asset value (NAV)

NAV per share$31.9100Sep 29, 2026

Market price$32.0400Sep 29, 2026

PREMIUM / DISCOUNT TO NAV0.41% premiumCalculated from the displayed same-date values.

NAV is the fund's assets minus liabilities, divided by shares outstanding. All values are USD per share.

First Trust issuer-reported closing NAV and market price, both dated 2026-09-29. The premium or discount is calculated from these two issuer-reported closing values. Older audited NAV history remains unchanged.

NAV source · Market-price source

Current evidence and recent developments

Reported fund net investment income per share: $0.41 for 2026-01-01 to 2026-06-30; actual period, not annualized.
Trailing distribution screen: 9.62% on 2026-09-11.
Latest announced cash distribution in the checked history: $0.1440; usual frequency quarterly.

What to watch next

Compare the next like-length collateral income and cash payment with realized futures results, strategy changes and net asset value.

Fly High context

Compare the next like-length collateral income and cash payment with realized futures results, strategy changes and net asset value.

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U.S. federal · Tax year 2025

Dividend tax treatment

The fund's 2025 distributions were mainly ordinary dividends. The mix can change from year to year.

This issuer information is a guide, not your personal tax statement. Use your Form 1099-DIV when you file.

Ordinary, nonqualified: 84.73%
Qualified dividends: 0%
Capital-gain distributions: 0%
Return of capital: 15.27%

Tax year: 2025. Total distributions: $3.15 per share.

Tax details and source

Total ordinary dividends (includes qualified): 84.73%
Section 199A portion (within ordinary dividends): 0%
Exempt-interest distributions: 0%
Reporting form: Form 1099-DIV
Source date: 2026-02-12

Qualified dividends are included in total ordinary dividends. Section 199A is a separate designation within ordinary dividends, not extra income or qualified dividend income.

Tax source

Your account type, holding period and circumstances affect treatment. Use your broker’s tax statement for filing. Return of capital generally reduces cost basis; amounts beyond basis can be taxable. IRS dividend guidance.

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