George Douglas, Chief Investment Officer at SSI Investment Management – sub-advisor to the fund- said, “During times of market uncertainty, investors may turn to convertible securities for a compelling investment opportunity. Convertible securities, as an asset class, have historically captured a high portion of equity returns with substantial truncation on the downside, providing a compelling investment over time.”

First Trust believes convertible securities are a special type of asset class that benefit from an active management approach. iShares Convertible Bond ETF (ICVT) and SPDR Barclays Convertible Securities ETF (CWBare both available to investors but take a passive approach to management with similar expense ratios of 0.35% and 0.40%, respectively. First Trust argues the ability to continuously adjust and re-balance without the restrictions of a specific index give FCVT both alpha generating and defensive qualities.

FCVT will open with a 0.35% expense ratio.