Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. First Trust Launches Limited Duration Bond ETF, ‘FSIG’
News
Share

First Trust Launches Limited Duration Bond ETF, 'FSIG'

Karrie GordonNov 18, 2021
2021-11-18

First Trust has announced the release of their newest ETF that invests in corporate bonds with limited duration in a press release. The First Trust Limited Duration Investment Grade Corporate ETF seeks to provide current income in investment-grade bonds while maintaining a portfolio with a weighted average duration within one year of the U.S. Corporate Bond 1-5 Year Index.

By investing in shorter-term duration bonds, the fund could provide less volatility in interest rates compared to longer duration bonds. Duration is important within the bond space because it measures the price sensitivity compared to interest rate changes.

First Trust believes that investing in short maturity, investment-grade corporate bonds offer diversification and income potential for an investor’s portfolio. With the central bank looking to raise interest rates next year and thereby suppress yield, these particular kinds of bonds would be a good opportunity for investors seeking income. Short maturity, investment-grade bonds strike a good balance between moving further out on the maturity curve or reducing credit quality too much to provide income.

“We believe an allocation to actively managed, short-duration investment-grade credit is timely given the expectation for both continued inflationary pressure and higher interest rates going forward. Investors looking to balance yield and duration exposure, while core bonds and other long-duration fixed income asset classes are under pressure, may find short duration investment-grade corporate bonds provide a smart and durable solution in this environment,” said William Housey, CFA, managing director of fixed income, senior portfolio manager at First Trust and a portfolio manager of FSIG.

Debt securities that FSIG primarily invests in are corporate bonds that are investment grade with a rating of Baaa3 or BBB- and above by at least one of the nationally recognized statistical rating organizations. The advisor constructs the portfolio through a bottom-up fundamental credit analysis that utilizes a risk management framework by analyzing a company’s ability to maintain stable cash flow throughout an economic cycle, companies whose valuations support their debt balances, as well as companies with a solid management team that has proven positive performance.

The advisor takes into account yield curve management, portfolio diversification, relative value, issuer liquidity, and monitoring the fund through active management to align the portfolio with the duration goal of 1 year more or less than the U.S. Corporate Bond 1-5 Year Index.

FSIG carries an expense ratio of 0.45%.

For more information, visit http://www.ftportfolios.com.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Jun 29

Is ESG Screaming Into the Endless Void?

Jun 29

ETF Leaders Powered by the NYSE: Frank Holmes

Jun 29

Gauging ESG's Unmeasurables

Jun 29

Ionic Inflation Protection ETF Launches

Jun 29

Emerging Markets Headwinds Might Propel This ETF Higher

Jun 29

Why You Should Get Exposure to International Equities

Jun 29

NFRA Takes in Almost $100 Million in Last 4 Weeks

Jun 29

Private Credit Pertinent for Those Seeking Income

Jun 29

These Two Funds Offer Dividends and Value

Jun 29

Top Performing Leveraged/Inverse ETFs: 06/26/2022

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

ARKK

ARK Innovation ETF

XLE

Energy Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SCHD

Schwab US Dividend Equity ETF...

XLV

Health Care Select Sector...

XLK

Technology Select Sector SPDR...

VYM

Vanguard High Dividend Yield...


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X