FirstTrust Merger Arbitrage Cl A (VARAX)
| Fund Assets | 1.51B |
| Expense Ratio | 2.14% |
| Min. Investment | $1,000 |
| Turnover | 403.00% |
| Dividend (ttm) | 0.63 |
| Dividend Yield | 5.62% |
| Dividend Growth | 61.90% |
| Payout Frequency | Annual |
| Ex-Dividend Date | Dec 5, 2024 |
| Previous Close | 10.73 |
| YTD Return | 3.77% |
| 1-Year Return | 5.05% |
| 5-Year Return | 25.98% |
| 52-Week Low | 10.29 |
| 52-Week High | 10.93 |
| Beta (5Y) | n/a |
| Holdings | 137 |
| Inception Date | Oct 1, 2015 |
About VARAX
First Trust Merger Arbitrage Fund Class A is a mutual fund that employs a merger arbitrage strategy, focusing on generating returns that are largely uncorrelated with the broader stock and bond markets. Its primary objective is capital appreciation through event-driven investing, specifically targeting public companies undergoing mergers, acquisitions, or other significant corporate actions. The fund seeks to exploit pricing inefficiencies that typically arise after the announcement of such deals by investing in equity securities and related derivatives of the involved companies. Merger arbitrage, the fund’s core strategy, aims to capture the spread between a target company's current market price and the contractual acquisition price, thus mitigating exposure to general market volatility and offering diversification benefits. This approach has the potential for more stable returns and downside mitigation, especially during periods of market fluctuation. The fund is designed to potentially benefit in rising interest rate environments, as arbitrage spreads may widen with increases in the risk-free rate. First Trust Merger Arbitrage Fund Class A invests across sectors and market capitalizations, reflecting the broad spectrum of corporate activity in the financial markets.
Performance
VARAX had a total return of 5.05% in the past year, including dividends. Since the fund's inception, the average annual return has been 3.50%.
Top 10 Holdings
46.65% of assets| Name | Symbol | Weight |
|---|---|---|
| MSILF Government Portfolio - Class Institutional | MVRXX | 11.71% |
| Dun & Bradstreet Holdings, Inc. | DNB | 5.43% |
| Springworks Therapeutics, Inc. | SWTX | 5.06% |
| Skechers USA, Inc. | SKX | 5.00% |
| Kellanova | K | 4.06% |
| Enstar Group Ltd. | ESGR | 3.58% |
| UMB MONEY MARKET II SPECIAL / | SMMFIDU | 3.40% |
| Blueprint Medicines Corporation | BPMC | 3.28% |
| The AZEK Company Inc. | AZEK | 3.06% |
| Agriculture & Natural Solutions Acquisition Corporation | ANSC | 2.08% |
Dividend History
| Ex-Dividend | Amount | Pay Date |
|---|---|---|
| Dec 5, 2024 | $0.63186 | Dec 5, 2024 |
| Dec 5, 2023 | $0.39029 | Dec 5, 2023 |
| Dec 5, 2022 | $0.08063 | Dec 5, 2022 |
| Dec 6, 2021 | $0.85751 | Dec 6, 2021 |
| Dec 3, 2020 | $0.08783 | Dec 3, 2020 |
| Dec 3, 2019 | $0.58251 | Dec 3, 2019 |