First Trust Intermediate Duration Investment Grade Corporate ETF (FIIG)

Overview

The described fund is a specialized investment vehicle focusing on corporate debt securities. It emphasizes its investment strategy on maintaining a portfolio that consists predominantly of investment-grade bonds. This strategy is designed to provide investors with a balance between risk and return, concentrating on securities that exhibit lower credit risk. The fund operates under a non-diverse categorization, indicating it may invest more heavily in fewer issuers, making it potentially more vulnerable to the performance of individual securities.

Products and Services

• Investment in Corporate Debt Securities

  The core offering involves investing at least 80% of the fund’s net assets in investment-grade corporate debt securities. These are bonds issued by corporations that are deemed to have a lower risk of default. The selection process for these securities relies on credit ratings provided by nationally recognized statistical rating organizations (NRSROs), ensuring that only bonds with a rating of Baa3/BBB- or higher are considered. This strategic focus is aimed at generating stable income while maintaining a controlled level of risk for investors.

• Investment Grade Focus

  Emphasizing investment-grade debt, the fund commits to allocating its resources to securities that have been evaluated by at least one NRSRO and have received a rating that signifies a lower risk of default. For bonds that are not rated, the fund’s investment advisor takes on the responsibility of deeming these securities as being of comparable quality to those that are rated. This approach underscores the fund’s meticulous selection process, designed to safeguard investors' capital while pursuing returns.