Bringing you live news and features since 2006 

First Trust launches First Trust Long Duration Opportunities ETF

RELATED TOPICS​

First Trust Advisors has launched a new actively managed ETF, the First Trust Long Duration Opportunities ETF (LGOV).

The fund seeks to generate current income with a focus on preservation of capital by investing at least 80 per cent of its net assets (including investment borrowings) in investment grade fixed-income securities that are issued or guaranteed by the US government.
 
With heightened interest rate and equity market volatility, the portfolio managers believe mortgage-backed securities (MBS) are an important piece of a diversified portfolio due to their low correlation to other core asset classes and positive credit quality trends. The portfolio is managed using a disciplined, rigorous and repeatable combination of top-down macro-economic views coupled with bottom-up security selection.
 
The fund is managed by First Trust Advisors L.P., with day-to-day management decisions made by the First Trust Securitized Products Group portfolio managers. The First Trust Securitized Products Group is a team of experienced professionals with extensive experience in managing and developing trading strategies for mortgage and real estate investment portfolios. When selecting the portfolio for the fund, the portfolio management team focuses on the global economy, macro trends in the fixed income market as well as ongoing valuations and trends of core MBS sectors.
 
The portfolio managers believe thorough and continuous monitoring of overall housing market fundamentals, quantitative portfolio modelling, 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.
 
“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,” says Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
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