First Trust SSI Strategic Convertible Securities ETF (FCVT)

Overview

The fund operates in the financial market, primarily focusing on investing in convertible securities. These investments take advantage of the hybrid nature of convertible securities that bond qualities and the potential for equity growth, associating them with both debt securities and common stocks. The fund's strategy is designed to allocate at least 80% of its net assets, including any funds borrowed for investment purposes, into a diversified portfolio that includes both U.S. and international convertible securities. This approach is aimed at capitalizing on the unique investment opportunities that convertible securities offer, blending the stability of bonds with the growth potential of stocks to aim for balanced investment returns under typical market conditions.

Products and Services

• U.S. Convertible Securities

  These are convertible bonds or preferred stocks located within the United States. They offer the investor the right to convert the securities into a predetermined amount of the issuing company's common stock, under specific conditions and within a set timeframe. The appeal of these securities lies in their ability to provide fixed-income returns with the potential for conversion into equity, giving upside exposure to stock price increases.

• Non-U.S. Convertible Securities

  This category includes convertible bonds or preferred stocks issued by companies outside of the United States. Like their U.S. counterparts, these securities can be converted into a specific amount of common stock of the issuing company or, in certain cases, a different company. Investing in non-U.S. convertible securities allows the fund to diversify its portfolio globally, taking advantage of international markets' growth potential while maintaining a level of income and stability offered by the fixed-income characteristics of these securities.