VARBX Fees and Costs — First Trust Merger Arbitrage Fund, Class I
Data updated: 2026-08-24
The net expense ratio is 1.75%. There are no sales loads or redemption fees. In fiscal 2024 the fund paid $2.2M in broker commissions, 0.1302% of average net assets, and portfolio turnover was 293%.
VARBX Fees and Expenses
Annual operating expenses and sales charges of VARBX. Prospectus, as of September 30, 2025.
| Annual operating expenses | |
|---|---|
| Management fee | 1.25% |
| 12b-1 fee | 0.00% |
| Other expenses | 0.48% |
| Gross expense ratio | 1.75% |
| Fee waiver | — |
| Net expense ratio | 1.75% |
| Sales charges | |
|---|---|
| Max front load | 0.00% |
| Max deferred load | 0.00% |
| Redemption fee | — |
| Expense limitation in place (N-CEN) | Yes |
| Fees waived or reduced during the year | No |
| Waived fees subject to recoupment | No |
VARBX Costs Over Time
On $10,000 invested in VARBX, assuming 5% a year before costs, total costs come to $1,156 over 5 years, cutting the return by 1.97% a year. Illustration, not a forecast: it assumes today's net expense ratio throughout (a fee waiver may end).
| $10,000 invested | Sell after 1 year | Sell after 3 years | Sell after 5 years |
|---|---|---|---|
| Value before costs | $10,500 | $11,576 | $12,763 |
| Fund expenses (net expense ratio 1.75%) | $184 | $568 | $976 |
| Trading costs (broker commissions) | $14 | $42 | $73 |
| Lost growth on money paid in costs | $0 | $30 | $107 |
| Total costs | $197 | $641 | $1,156 |
| Value after costs | $10,303 | $10,935 | $11,607 |
| Impact on return, per year | 1.97% | 1.97% | 1.97% |
VARBX Trading Costs
Brokerage costs reported on SEC Form N-CEN for the fiscal year ending September 30, 2024.
- Explicit cost rate (commissions ÷ average net assets): 0.1302%
- Total broker commissions: $2.2M
- Bought from dealers (principal trades, not a cost): $13.8B
- Portfolio turnover (prospectus): 293%
- Securities lending: none during the year
VARBX Agency Brokers
Commissions paid.
| Broker | Amount | Share |
|---|---|---|
| SEAPORT GLOBAL SECURITIES LLC | $449K | 22.96% |
| COWEN AND COMPANY, LLC | $314K | 16.03% |
| GOLDMAN SACHS & CO. LLC | $260K | 13.28% |
| J.P. MORGAN SECURITIES LLC | $246K | 12.57% |
| CANTOR FITZGERALD & CO. | $215K | 10.99% |
| MIZUHO SECURITIES USA LLC | $136K | 6.95% |
| Wolverine Execution Services, Llc | $115K | 5.90% |
| BTIG, LLC | $95K | 4.88% |
| STONEX FINANCIAL INC | $78K | 3.98% |
| BARCLAYS CAPITAL INC. | $48K | 2.46% |
VARBX Dealer Counterparties
Securities bought directly from dealers (principal trades).
| Broker | Amount | Share |
|---|---|---|
| CANTOR FITZGERALD & CO. | $118.6M | 40.97% |
| BNP PARIBAS SECURITIES CORP. | $78.5M | 27.14% |
| BTIG, LLC | $27.7M | 9.57% |
| J.P. MORGAN SECURITIES LLC | $18.5M | 6.38% |
| CANACCORD GENUITY INC. | $16.4M | 5.66% |
| SEAPORT GLOBAL SECURITIES LLC | $15.1M | 5.22% |
| JEFFERIES LLC | $5.7M | 1.96% |
| EARLY BIRD CAPITAL, INC | $5.5M | 1.90% |
| COWEN AND COMPANY, LLC | $2.6M | 0.89% |
| Maxim Group LLC | $913K | 0.32% |
First Trust Merger Arbitrage Fund Share Classes
Net expense ratio and maximum front-end load of each share class, cheapest first.
| Ticker | Class | Net expense ratio | Front load |
|---|---|---|---|
| VARBX | Class I | 1.75% | none |
| VARAX | Class A | 2.07% | 4.50% |
| VARCX | Class C | 2.80% | none |
For information only. Not investment advice: figures are as reported in SEC filings and may contain errors or be out of date. Past performance does not guarantee future results.