HISF Profile
The First Trust High Income Strategic Focus ETF is designed to deliver a diversified income stream and potential total return through strategic investments in U.S.-listed exchange-traded funds (ETFs). Managed by First Trust Advisors L.P., the fund utilizes a proprietary High Income Model to guide its investment strategy. This model emphasizes generating high levels of income while aiming for robust total return through a carefully selected mix of fixed income assets.
Under normal market conditions, the fund allocates its assets across a range of ETFs that adhere to the principles of the High Income Model. This approach involves investing in ETFs that provide exposure to various fixed income securities, including corporate bonds, high-yield debt, and other income-generating instruments. The goal is to create a well-diversified portfolio that can offer attractive income levels while managing risk across different fixed income sectors.
A significant portion of the fund's investments is directed towards the First Trust TCW Opportunistic Fixed Income ETF. This strategic allocation reflects the fund's commitment to leveraging opportunities within the fixed income market to enhance yield and total return. The TCW Opportunistic Fixed Income ETF is selected based on its potential to complement the fund's overall income strategy and contribute to its performance objectives.
The First Trust High Income Strategic Focus ETF employs an active management approach to adapt to changing market conditions and optimize the income potential of its investments. By focusing on a diversified array of fixed income ETFs and strategically allocating assets, the fund aims to meet its investment objectives and provide investors with a reliable source of high income. This active management strategy allows the fund to respond to market dynamics and seek opportunities for enhancing returns while maintaining a diversified investment profile.
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