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

Solactive writes that in the face of market volatility, investors often turn to portfolio diversification as a key strategy. “One..
The Luxembourg House of Financial Technology (LHoFT), together with PwC Luxembourg and with the active support of the Association of..
Sustainability tech platform Clarity AI has announced that its sustainability capabilities are now supporting European white label platform, HANetf...
Chimera Capital LLC, an Abu-Dhabi-based investment management firm, has announced the launch of the Chimera S&P China HK Shariah Exchange..

Related Articles

Henry Timmons, RBA
Henry Timmons, director of ETFs and Michael Contopoulos, director of fixed income at Richard Bernstein Advisors are on a mission...
Kelsey Mowrey, Motley Fool Asset Management
Speaking with ETF Express in March, Brian Barish, a fund manager with Cambiar commented on the Vanguard solution which allows...
Phillippe Malaise, Trackinsight
Trackinsight has published its fourth global ETF survey, revealing that investors have an appetite for actively managed ETFs....
Joy Yang, MVIS
The passive versus active debate is a ‘thought experiment’ according to Joy Yang, Head of Index Product Management at MarketVector...
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