MARB

First Trust Merger Arbitrage ETF

$20.68

+0.00%

Market closed. Last update: 12:30 PM ET

📎 Investment Objective

The First Trust Merger Arbitrage ETF (MARB) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Merger Arbitrage Index.

Overview

ETF tracking First Trust Merger Arbitrage ETF

Category Alternative

Issuer First Trust

Inception Date 2020-02-04

Market Cap $35.2M

Average Volume N/A

Dividend Yield 3.30%

52-Week Range $19.64 - $20.80

VWAP $20.69

Performance

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Investment Summary

📎 Investment Objective

The First Trust Merger Arbitrage ETF (MARB) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Merger Arbitrage Index.

🎯 Investment Strategy

The fund employs a merger arbitrage strategy, which involves taking long positions in companies that are the target of announced acquisition or merger transactions and short positions in the acquirer's stock. The goal is to profit from the spread between the target company's stock price and the ultimate deal price.

✨ Key Features

Focuses on merger arbitrage, a specialized alternative investment strategy
Aims to provide returns that are uncorrelated to broader equity market performance
Utilizes both long and short positions to capture the spread in announced deals
Relatively low assets under management and new fund with limited performance history

⚠️ Primary Risks

Merger deal risk - if a proposed transaction is terminated or renegotiated, the fund could incur losses
Short selling risk - the potential for unlimited losses on short positions
Liquidity risk - the fund may have difficulty exiting positions in less liquid merger targets
Limited performance history - the fund's track record is too short to evaluate long-term results

👤 Best For

The First Trust Merger Arbitrage ETF may be suitable for experienced investors seeking alternative sources of returns that are not highly correlated to the broader stock market. However, the fund's specialized strategy and limited history make it a higher-risk, higher-volatility investment that requires a long-term time horizon and tolerance for illiquidity.