ETF Watch: First Trust Plans Go-Anywhere Bond Fund

The actively managed fund will be subadvised by TCW Investment Management.

ETF.com
|
Reviewed by: etf.com Staff
,
Edited by: etf.com Staff

First Trust recently filed for an actively managed fixed-income ETF that will be able to invest in a wide range of fixed-income securities of any credit quality. The First Trust TCW Opportunistic Fixed Income ETF (FIXD) will launch on the Nasdaq and will be subadvised by TCW Investment Management.

FIXD’s strategy will involve focusing on the portions of the fixed-income market that TCW believes to be undervalued. According to the prospectus, there is no target maturity, but the fund will seek to maintain an average portfolio duration that falls within one year of the Bloomberg Barclays U.S. Aggregate Index’s duration.  

Essentially, the ETF can invest in whatever part of the fixed-income market its managers see fit.

TCW, known for its fixed-income expertise, is not new to ETFs. In 2014, it managed four emerging market bond funds for Emerging Global Advisors, but the products closed within less than a year.

The filing did not include an expense ratio.

Contact Heather Bell at [email protected].

 

etf.com is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At etf.com, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.