(FSIG) First Trust Exchange-Traded - Ratings and Ratios

The First Trust Exchange-Traded Fund IV (FSIG) is a short-term bond ETF that primarily invests in investment-grade corporate debt securities, targeting at least 80% of its net assets in such securities under normal market conditions. The funds portfolio is constructed to maintain a weighted average duration within one year of the Bloomberg U.S. Corporate 1-5 Year Index, aligning with short-duration strategies. FSIG may allocate up to 20% of its net assets to debt securities of any credit quality, allowing for flexibility in navigating market conditions. The fund typically holds securities from issuers across various industries, including financials, industrials, and consumer discretionary sectors.

FSIGs investment approach focuses on preserving capital while generating income through a diversified portfolio of short-term corporate bonds. The funds duration targeting helps mitigate interest rate sensitivity, making it suitable for investors seeking lower volatility in rising rate environments. With an AUM of $1.23 billion, FSIG offers liquidity and scale, which can be advantageous for executing its investment strategy efficiently.