At a glance
LALT charges 1.18% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $343.5M in assets, the 8th largest of that group; it paid 3.9% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +13.1% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +10.8% a year.
The short version
First Trust Multi-Strategy Alternative ETF (LALT) is an actively managed fund of funds. It spreads its money across other exchange-traded funds that use alternative strategies such as long/short equity, managed futures and commodities. It aims for returns that move less in step with stocks and bonds. Its 1.18% expense ratio is high, and five of its seven holdings are First Trust's own funds.
Price history
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LALT +13.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LALT official prospectus, to Dec 31, 2024 | — | +8.76% | — | — | — | +4.93% |
| LALT price data to Oct 27, 2026 | +12.1% | +13.1% | +10.8% | — | — | +8.7% |
- Over the year to Oct 27, 2026, LALT returned +13.1%, 1st of 8 among similar funds.
- Its worst full calendar year was 2024 (+8.8%); its best was 2025 (+10.8%).
- The deepest fall in its price history was 6.3% (Jan 24, 2025 to Feb 4, 2025), recovered by Feb 10, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.1% | — |
| 2025 | +10.8% | — |
| 2024 | +8.8% | +8.76% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6500 | |
| 2025 | $0.4600 | +4.5% |
| 2024 | $0.4400 |
What's inside
As of Aug 31, 2026, the fund held 7 securities; the ten largest made up 99.91% of assets.
| Fund held | Weight | |
|---|---|---|
| First Trust Long/Short Equity ETF | 21.84% | |
| First Trust Managed Futures Strategy Fund | 21.39% | |
| First Trust Alternative Absolute Return Strategy ETF | 20.67% | |
| First Trust Low Duration Opportunities ETF | 10.26% | |
| Franklin Systematic Style Premia ETF | 9.52% | |
| First Trust Global Tactical Commodity Strategy Fund | 9.02% | |
| ISHARES TRUST 7-10 YEAR TREASURY BOND ETF | 7.22% |
By country
United States 99.91%By asset type
Stocks 99.91%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $275.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.74%, +0.71%, +1.00%.
How it works
LALT does not track an index. Its adviser, First Trust Advisors L.P., picks the holdings. The goal is long-term total return with lower correlation to stocks and bonds. That means returns that don't rise and fall in step with benchmarks like the S&P 500 or the Bloomberg Aggregate Bond Index. The fund can use hedged equity, long/short, event driven, managed futures, commodities, real estate, opportunistic fixed income, relative value, currency and global macro strategies. It gets these mostly by buying other exchange-traded products: ETFs, exchange-traded notes and trusts backed by commodities or currencies.
First Trust starts by identifying strategies and the products that offer them. It then rates each product on its correlation, its return history and its standard deviation, a measure of how much returns swing. Next it adds broader economic data, builds several trial portfolios and picks a mix. The prospectus sets no fixed weights or rebalancing schedule. Portfolio turnover was 31%.
As of August 31, 2026, the fund owned seven funds. The three largest were First Trust Long/Short Equity ETF, First Trust Managed Futures Strategy Fund and First Trust Alternative Absolute Return Strategy ETF, at roughly 21% to 22% each. LALT held no derivatives directly. The short selling and futures trading happen inside the funds it owns. The prospectus warns that First Trust has a financial incentive to favor its own funds.
What it really costs
- LALT charges 1.18% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.2% is the management fee; the rest covers other fund expenses.
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
LALT is built to move differently from stocks and bonds, not to serve as a portfolio's main growth or income engine.
LALT could add a slice of a portfolio that hasn't tracked the stock market closely. Its beta, a measure of how much a fund moves with the market, was 0.14 for the year to October 27, 2026. Its three-year volatility was 7.7%. But its record is short. The fund launched on January 31, 2023, so it never went through the 2008, 2020 or 2022 sell-offs. Its deepest drop was 6.3%, from January 24 to February 4, 2025, and it had recovered by February 10, 2025. Both full calendar years were positive: 8.8% in 2024 and 10.8% in 2025. Calm years like these say little about how it would hold up in a deep bear market, when a retiree might need to sell shares. The trailing yield was 3.9% as of October 27, 2026, paid quarterly. The 1.18% expense ratio is a steady drag on returns. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want one fund that bundles long/short equity, managed futures, commodity and absolute-return funds instead of buying each one separately.
- Retirees looking for a slice with low stock-market sensitivity. Its beta was 0.14 for the year to October 27, 2026.
- Holders who are comfortable with quarterly payouts that can vary. The trailing yield was 3.9% as of October 27, 2026.
Look elsewhere if
- Cost-conscious investors. The 1.18% total expense ratio is far above the 0.20% management fee, largely because it includes what the underlying funds charge.
- Investors who want a long track record. LALT launched in January 2023 and hasn't been through a severe bear market.
- Investors wary of one firm's funds. Five of the seven holdings are First Trust funds, and the prospectus flags this as a conflict of interest.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| LALT this fund | 1.18% | $343.5M | +13.1% | +10.8% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is LALT a good investment for retirement?
That depends on the job it's meant to do. LALT is built as a diversifier, not a core holding. Its beta was 0.14 for the year to October 27, 2026, so it moved little with the stock market. It returned 8.8% in 2024 and 10.8% in 2025, and its deepest drop was 6.3%, in early 2025. However, it launched in January 2023, so it hasn't been tested by a severe bear market. Its 1.18% expense ratio is also high.
Does LALT pay dividends?
Yes. LALT pays distributions quarterly. Over the twelve months to October 27, 2026, it paid $0.97 per share, a yield of 3.9%. The payouts come from the funds it owns, which include a low-duration bond fund and a Treasury bond fund, so the amount can change from quarter to quarter. Income isn't the main aim. The fund's stated objective is long-term total return, not a set level of income.
Why is LALT's expense ratio so high?
LALT's expense ratio is 1.18%, according to its prospectus filed December 29, 2025. First Trust's management fee is only 0.20%. Most of the gap comes from LALT being a fund of funds, so its holders also pay the costs of the seven funds it owns. That makes it more expensive than each of the buffer ETFs in our comparison list, which charge 0.79% to 0.95%. Those funds follow a different strategy, though.
What does LALT hold?
As of August 31, 2026, LALT held seven exchange-traded funds: First Trust Long/Short Equity ETF (FTLS, 21.8%), First Trust Managed Futures Strategy Fund (FMF, 21.4%), First Trust Alternative Absolute Return Strategy ETF (FAAR, 20.7%), First Trust Low Duration Opportunities ETF (LMBS, 10.3%), Franklin Systematic Style Premia ETF (FLSP, 9.5%), First Trust Global Tactical Commodity Strategy Fund (FTGC, 9.0%) and iShares 7-10 Year Treasury Bond ETF (IEF, 7.2%). The manager can change this mix at any time.
LALT vs BUFR: what's the difference?
They follow different strategies. BUFR, the FT Vest Laddered Buffer ETF, is a buffer fund. Funds like this typically track a stock index, with a cushion against some losses and a cap on gains. LALT spreads its money across alternative strategies meant to move apart from stocks. BUFR returned 16.8% a year over the three years to October 27, 2026, compared with 10.8% for LALT. BUFR also costs less: 0.95% versus 1.18%. LALT did better over one year, returning 13.1% versus 11.6%.