FTLS: Credible As A Standalone Alpha Generator Or An Index Buffer
First Trust Long/Short Eqty ETF has delivered repeatable alpha over a prolonged period, mostly achieved via variance reduction more than correlation drift. The fund uses non-proprietary forensic accounting and market-based variables to select assets, which shapes a good combination – I don't believe in a siloed approach to long/short investing. I deem its fees reasonable with management fees clocking in at 0.95% and total expense ratios not being materially higher. In addition, distributions are low-to-moderate.
FTLS: Strong Long/Short EQ Strategy, But In My Opinion Not Well Suited For What's Coming
FTLS delivers lower volatility than the S&P 500, with 8.46% annualized volatility versus nearly 13%, but this comes at the cost of upside participation. The long book tilts toward Tech while the short book skews toward smaller, less liquid, lower quality names, creating a structural drag versus momentum-driven markets. Since March 2026, the gap between FTLS and the S&P 500 has widened as momentum and multiple expansion favored lower quality, tech-heavy stocks.
FTLS: Reaffirming My Buy Recommendation
First Trust Long/Short Equity ETF remains a Buy for conservative and balanced investors seeking downside protection amid frothy market valuations. FTLS offers competitive returns with significantly lower volatility and superior downside protection compared to the S&P 500, making it ideal for risk-averse portfolios. While FTLS lags in up markets and has a high expense ratio (1.38%), its low beta and consistent risk-adjusted returns justify its inclusion for diversification.
FTLS: Active Long-Short ETF With Good Downside Protection
First Trust Long/Short Equity ETF (FTLS) is an active equity ETF whose long and short exposures may vary with market conditions. FTLS currently has a 66% net long exposure with a focus on consumer discretionary and technology, and solid fundamental metrics. Compared to competitors, FTLS shows compelling downside protection, although investors prioritizing risk-adjusted return may prefer CLS.
FTLS: This Long-Short ETF Is Still A Buy
FTLS is a long/short ETF with a strong performance history, offering low volatility and shallow drawdowns, making it a robust alternative to SPY. The fund's active management and sectoral positioning allow it to capture upside while minimizing downside, outperforming in down markets. With the current high P/E ratios, switching from SPY to FTLS can help manage risk and limit potential losses during market corrections.
FTLS Is The Best ETF For Hedging
I am exploring ETFs for a balanced portfolio and found First Trust Long/Short Equity (FTLS) as a promising hedging strategy. Hedging can limit returns but improves risk profiles, making it suitable for risk-averse investors like me. FTLS excels in risk management, outperforming the Credit Suisse Hedge Index in all risk metrics, despite lower overall returns compared to SPY.
FTLS: An Alternative Strategy That's Worked
First Trust Long/Short Equity ETF offers a long/short strategy to lower long exposure and playoff long/short spreads. The FTLS ETF blends quantitative and fundamental analysis to determine net exposure, with a focus on risk management and the Earnings Quality Rank model. FTLS has a Tech-heavy long position, minimal Tech exposure in a short book, and outperforms peer alternative strategies like IQ Hedge Multi-Strategy Tracker ETF.
FTLS: Reiterate Buy Recommendation On Excellent Results
First Trust Long/Short Equity ETF uses earnings quality to pick stocks to go long and short. FTLS has delivered hedge fund-like performance at mutual fund-like fees. In a market defined by higher interest rates, companies with good earnings momentum are vastly outperforming those without, which benefits FTLS.
