LGOV Profile
The First Trust Long Duration Opportunities ETF is designed to offer investors exposure to a portfolio of investment-grade debt securities with long durations. Under typical market conditions, the fund commits at least 80% of its net assets, including any investment borrowings, to debt securities issued or guaranteed by the U.S. government, its agencies, or government-sponsored entities. This includes publicly-issued U.S. Treasury securities and a range of mortgage-related securities, aiming to provide a stable and secure investment environment.
The fund's investment strategy is centered on long-duration securities, which are typically characterized by their extended maturity periods and sensitivity to interest rate changes. By focusing on investment-grade debt securities, the ETF seeks to deliver consistent income while maintaining a lower risk profile associated with higher credit quality. This approach is intended to attract investors seeking stable returns from government-backed securities amidst fluctuating market conditions.
In addition to its core holdings in government and agency securities, the fund may also invest in exchange-traded funds (ETFs) that align with its investment objectives. This flexibility allows the fund to broaden its exposure to various fixed-income sectors and strategies, enhancing its ability to capture opportunities across the fixed-income spectrum. The use of ETFs can provide additional diversification and liquidity, complementing the fund's primary investments.
As a focused investment vehicle, the First Trust Long Duration Opportunities ETF emphasizes long-duration, investment-grade securities to achieve its investment goals. Its strategy is particularly suited for investors looking to mitigate credit risk while benefiting from the stability of government-backed securities. By concentrating on these high-quality debt instruments, the fund aims to offer a reliable source of income and preserve capital over the long term.
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