First Trust Preferred Securities and Income ETF (FPE)

Overview

The fund in question is designed for investors looking to diversify their portfolio through a focus on preferred securities and income-producing debt instruments. By allocating at least 80% of its net assets, including investment borrowings, towards Preferred Securities and Income Securities, the fund aims to provide steady income. It operates within a framework that allows for flexibility in investment choices, as it invests in securities that can be either traded over-the-counter or listed on an exchange. This approach ensures a mix of accessibility and potential for income generation for its investors.

Products and Services

• Preferred Securities

  These are financial instruments that represent ownership in a company but typically do not confer voting rights. Preferred Securities often offer higher yield returns than common stock and are considered a hybrid of debt and equity. The fund invests a majority of its assets into these securities, aiming to capture their income-producing potential and provide investors with regular dividend payments.

• Income Securities

  Income Securities refer to debt instruments that are designed to provide regular income payments to investors. These can include bonds, debentures, or other types of debt securities. The fund focuses on investing in Income Securities that have the potential to generate steady cash flows. This strategy is particularly attractive to conservative investors or those looking for lower-risk investments that can still provide a moderate return.