FIXD Profile
The First Trust TCW Opportunistic Fixed Income ETF is designed to provide investors with a flexible and opportunistic approach to fixed income investing. The fund seeks to achieve its investment objective by allocating at least 80% of its net assets, including any borrowings for investment purposes, into a diverse range of fixed income securities. This includes government bonds, corporate bonds, municipal bonds, and mortgage-backed securities, among others.
Under its investment strategy, the fund has the ability to invest up to 35% of its net assets in corporate debt, non-U.S. debt, and non-agency securities that are rated below investment grade by one or more nationally recognized statistical rating organizations (NRSROs). This high-yield or "junk" bond allocation allows the fund to target potentially higher returns, albeit with increased risk compared to investment-grade securities.
The fund is managed with a focus on opportunistic strategies, meaning it actively seeks out investment opportunities based on market conditions, economic forecasts, and credit assessments. The investment team uses a rigorous analysis process to identify undervalued or mispriced securities, aiming to maximize returns while managing risk through a diversified portfolio.
In addition to its core fixed income investments, the First Trust TCW Opportunistic Fixed Income ETF may engage in various credit and duration management strategies. This could involve adjusting the portfolio's interest rate sensitivity or shifting allocations based on anticipated changes in interest rates or economic conditions. The fund is suitable for investors seeking exposure to a broad spectrum of fixed income investments with the potential for higher yields, combined with the flexibility to adapt to changing market environments.
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