FT Tactical High Yield ETF (HYLS)

Overview

The referenced fund specializes in high-yield, below-investment-grade debt securities, commonly referred to as "junk bonds." This category of investments includes bonds that carry a higher risk of default compared to more conservative, investment-grade bonds. The strategy primarily targets securities that offer potentially higher returns, compensating for the increased risk. This approach indicates a focus on dynamic market opportunities, leveraging the expertise of the fund's advisors to identify undervalued or promising debt securities. The inclusion of investment borrowings within the fund's asset allocation further underscores its aggressive investment strategy, aiming to maximize returns for investors.

Products and Services

• High Yield Debt Securities

  This fund primarily invests in high-yield debt securities that are rated below investment grade at the time of purchase. These securities, often referred to as "junk bonds," are issued by entities that may have a higher risk of default but offer the potential for higher returns compared to investment-grade bonds. This type of investment is suitable for investors seeking higher income and who are comfortable with the increased risk associated with these securities.

• Unrated Securities Investments

  In addition to rated high-yield debt, the fund also engages in the purchase of unrated securities. These are debt instruments not rated by major credit rating agencies but are deemed by the fund's advisor to possess comparable quality to their rated counterparts. Investing in unrated securities allows the fund to uncover potential gems that are overlooked by other investors, possibly due to the lack of an official rating. It's an opportunity to gain exposure to unique market segments with the guidance of the fund's experienced advisors.