MFLX Profile
The First Trust Flexible Municipal High Income ETF is an actively managed exchange-traded fund designed to provide investors with a high level of tax-exempt income. The fund seeks to achieve its investment objective by focusing on municipal debt securities, which are primarily issued by or on behalf of U.S. states, territories, possessions, and the District of Columbia. These securities are also issued by their respective political subdivisions, agencies, authorities, and other governmental entities. The income generated by these investments is typically exempt from regular federal income taxes, making this ETF particularly attractive to investors in higher tax brackets seeking tax-efficient income streams.
Under normal market conditions, the fund invests at least 80% of its net assets, including any amounts borrowed for investment purposes, in municipal bonds. The fund’s flexible mandate allows it to invest across a wide spectrum of municipal debt securities, regardless of credit quality or maturity. This flexibility enables the portfolio management team to actively adjust the fund’s holdings in response to changing market conditions, interest rate environments, and credit spreads, with the goal of maximizing income and managing risk.
The First Trust Flexible Municipal High Income ETF is designed for investors looking to benefit from the relative safety and income potential of municipal bonds, while also allowing for tactical positioning to capture opportunities in different segments of the municipal market. The fund’s active management approach involves rigorous credit analysis and strategic asset allocation, aiming to strike a balance between yield and credit quality. By focusing on higher-yielding municipal securities, the fund targets investors who are willing to assume additional credit risk in exchange for potentially higher tax-exempt income.
As part of the broader First Trust family of funds, the Flexible Municipal High Income ETF leverages the expertise of First Trust’s experienced fixed-income team. This team is well-versed in navigating the complexities of the municipal bond market, including assessing the creditworthiness of issuers, monitoring regulatory developments, and identifying attractive investment opportunities. By investing in this ETF, investors gain access to a diversified portfolio of municipal bonds that offer the potential for tax-exempt income, while also benefiting from the active management and deep market insights that First Trust brings to its fixed-income strategies.
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