FPE Profile
The First Trust Preferred Securities & Income ETF (FPE) is an exchange-traded fund that primarily focuses on broad credit fixed income. Launched on February 12, 2013, and issued by First Trust, FPE is an actively managed fund designed to generate income by investing in a diversified portfolio of preferred equities and income-producing debt securities. The fund's strategy involves a global approach, targeting investments across various market capitalizations to capture opportunities in different regions and sectors.
FPE's investment philosophy is centered around maximizing income while managing risk. The fund allocates its assets among preferred securities, which are hybrid instruments that combine features of both stocks and bonds, and other income-generating debt. This blend aims to provide a steady income stream while also offering potential for capital appreciation. The active management of the fund allows for strategic adjustments based on market conditions, credit ratings, and economic outlooks, ensuring a dynamic and responsive investment approach.
First Trust, the issuer of FPE, is known for its commitment to innovation and investor-centric fund management. With a strong focus on research and analysis, First Trust employs a team of experienced portfolio managers and analysts to oversee FPE. The fund's management team utilizes a rigorous selection process, evaluating potential investments based on their credit quality, yield potential, and market conditions. This thorough approach helps mitigate risks and enhance the fund's ability to deliver consistent income.
Investors in the First Trust Preferred Securities & Income ETF benefit from the fund's global diversification and active management. By investing in a wide range of preferred equities and debt securities, FPE aims to provide a balanced and resilient income source. The fund's flexibility to adapt to changing market environments and its emphasis on high-quality, income-producing assets make it an attractive option for investors seeking income generation with a focus on credit quality and stability.
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