Key stats
About First Trust Exchange-Traded Fund IV First Trust Commercial Mortgage Opportunities ETF
Expense ratio
0.55%
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Inception date
Feb 28, 2024
CAAA aims for long-term total return through an actively managed portfolio of AAA-rated commercial mortgage-backed securities. The fund primarily invests in non-agency CMBS, including restricted and interest or principal-only CMBS. The adviser constructs the portfolio using a relative value approach, which utilizes quantitative and qualitative methods to assess each security's risk-versus-reward characteristics against other eligible securities. The fund has no geographical, duration, or maturity restrictions. However, it seeks a weighted average portfolio duration of +/- two years of Bloomberg Non-Agency Investment Grade CMBS: US Aggregate Eligible Aaa Index's weighted average duration. The fund will not invest in CMBS with a credit rating below A-. Lastly, the fund may use derivatives such as futures, forwards, options, and swaps to manage risk, reduce transaction costs, obtain exposure to the CMBS market, manage cash flows, and/or preserve capital.
Classification
What's in the fund
Exposure type
Securitized
Bonds, Cash & Other100.00%
Securitized94.12%
Government3.16%
Mutual fund2.52%
Cash0.20%