First Trust Merger Arbitrage Fund Class I (VARBX)
| Fund Assets | 1.53B |
| Expense Ratio | 1.84% |
| Min. Investment | $500,000 |
| Turnover | 403.00% |
| Dividend (ttm) | 0.66 |
| Dividend Yield | 6.31% |
| Dividend Growth | 53.61% |
| Payout Frequency | Annual |
| Ex-Dividend Date | Dec 5, 2024 |
| Previous Close | 11.16 |
| YTD Return | -0.28% |
| 1-Year Return | 0.13% |
| 5-Year Return | 20.23% |
| 52-Week Low | 10.52 |
| 52-Week High | 11.16 |
| Beta (5Y) | 0.01 |
| Holdings | 138 |
| Inception Date | Oct 1, 2015 |
About VARBX
First Trust Merger Arbitrage Fund Class I is a mutual fund specializing in merger arbitrage, an event-driven investment strategy focused on companies undergoing significant corporate actions like mergers or acquisitions. The fund seeks to generate returns that are largely uncorrelated with the broad equity and bond markets, offering potential diversification benefits for portfolios. By targeting the price spread between a company’s trading price after a merger announcement and the deal’s completion price, the fund aims to capture the arbitrage opportunity while mitigating exposure to general market volatility. The portfolio predominantly includes equity securities such as common and preferred stocks of firms involved in announced merger transactions, mainly within the United States and Canada, and avoids speculative or unconfirmed deals. With a notable emphasis on downside risk management and stable volatility, this fund typically maintains a low correlation and low beta to traditional asset classes. Its strategy has particular relevance in rising interest rate environments, as arbitrage spreads often widen with higher risk-free rates. The fund is designed for institutional investors seeking capital appreciation and diversification through unique market events rather than market trends.
Performance
VARBX had a total return of 0.13% in the past year, including dividends. Since the fund's inception, the average annual return has been 6.45%.
Top 10 Holdings
48.77% of assets| Name | Symbol | Weight |
|---|---|---|
| MSILF Government Portfolio - Class Institutional | MVRXX | 14.06% |
| WNS (Holdings) Limited | WNS | 5.83% |
| Verona Pharma PLC | VRNA | 5.41% |
| Veritex Holdings, Inc. | VBTX | 4.83% |
| Mr. Cooper Group Inc. | COOP | 4.08% |
| UMB MONEY MARKET II SPECIAL / | SMMFIDU | 3.79% |
| CyberArk Software Ltd. | CYBR | 3.25% |
| Electronic Arts Inc. | EA | 2.83% |
| Aris Water Solutions, Inc. | ARIS | 2.56% |
| Kellanova | K | 2.13% |
Dividend History
| Ex-Dividend | Amount | Pay Date |
|---|---|---|
| Dec 5, 2024 | $0.66397 | Dec 5, 2024 |
| Dec 5, 2023 | $0.43225 | Dec 5, 2023 |
| Dec 5, 2022 | $0.09335 | Dec 5, 2022 |
| Dec 6, 2021 | $0.8873 | Dec 6, 2021 |
| Dec 3, 2020 | $0.08783 | Dec 3, 2020 |
| Dec 3, 2019 | $0.58251 | Dec 3, 2019 |