FDIVFirst Trust Strategic Income ETF
FDIV Fund Description
FDIV seeks income across a broad range of assets, including high-yield bonds, bank loans, preferred stock, MBSs, MLPs, dividend-paying equity and sovereign debt. The actively managed fund allocates to multiple managers.
FDIV Factset Analytics Insight
In a popular space dominated by index-based ETFs, FDIV serves up an actively managed portfolio aiming for income from different asset groups. Here's the first wrinkle: each of those different asset groups has a different subadvisor, providing an additional active management layer. The fund hunts for income across a broad swath of asset types: high-yield bonds, bank loans, preferred stock, MBSs, MLPs, dividend-paying equity (including option overlays), and sovereign debt (including emerging markets).However, FDIV actively allocates to these asset types using a variety of inputs (momentum, fundamentals, long-term return expectations, correlations, and macroeconomic conditions) and has broad discretion with respect to weights (0% to 50%) in each asset class. This flexibility means that any resemblance to the broader income market is merely coincidental. The fund should appeal to those seeking yield but not the fixed top-line allocations used by many competitors.FDIV should be traded with care: daily volume is low and spreads can be extremely wide. Its underlying basket of other funds should make block trades a bit easier, especially when working through the issuer First Trust. Given all its moving parts, its fee seems reasonable.
FDIV Charts And Performance
FDIV Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of FDIV. FDIV is rated a N/A out of 5.