Bringing you live news and features since 2006 


First Trust to launch active 130/30 high-yield ETF


First Trust is planning to launch an active “junk bond” exchange-traded fund, according to a filing made with the US Securities and Exchange Commission.

The primary objective of the First Trust High Yield Long/Short ETF is to provide current income with a secondary objective of capital appreciation.

According to the filing, the fund will look to achieve those aims by investing at least 80 per cent of its net assets (plus the amount of any borrowing for investment purposes) in high yield debt securities that are rated below investment grade at the time of purchase or unrated securities deemed by the fund’s adviser to be of comparable quality, commonly referred to as "junk" bonds.

These securities may include US and non-US corporate debt obligations, bank loans and convertible bonds, while First Trust will use lowest available rating available when determining whether a security is below investment grade.

The fund will employ a 130/30 strategy, maintaining 130 per cent of its assets in long positions and 30 per cent in short positions.

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by