The portfolio managers believe thorough and continuous monitoring of overall housing market fundamentals, quantitative portfolio modeling, and the ability to rebalance the portfolio to stay within the fund’s duration target of eight or more years, is critical to achieving higher risk-adjusted returns. Duration is a mathematical calculation of the average life of a debt security (or a portfolio of debt securities) that serves as a measure of its price risk.
Related: Latest ETF Launches of 2019
“This ETF will further expand First Trust’s robust lineup of actively-managed ETFs, providing investment advisors with a long duration strategy that complements our existing lineup of actively-managed fixed income ETFs,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.
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