First Trust Advisors expanded on its ETF suite with an actively managed low-duration fixed-income strategy that could provide less rate sensitivity during the rising interest rate environment ahead.
The recently launched First Trust Low Duration Strategic Focus ETF (NasdaqGM: LDSF) comes with a 0.86% expense ratio.
The actively managed ETF will be managed by Daniel J. Lindquist, Managing Director of First Trust; David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust; Chris A. Peterson, Senior Vice President of First Trust; William Housey, Senior Vice President of First Trust; and Steve Collins, Vice President of First Trust.
The First Trust Low Duration Strategic Focus ETF will try to generate current income and preserve capital through investing in a portfolio of U.S.-listed ETFs that track income-generating securities with a target duration of three years or less.
The ETF managers will utilize a disciplined process to review macroeconomic outlook, policy drivers and asset level analysis in the portfolio construction and ongoing risk management, according to the fund’s prospectus. They will take a top-down review of macroeconomic factors including monetary and fiscal policies, growth forecasts, trade and tax policies, global market vies and current market valuations.