(FSIG) First Trust Exchange-Traded - Ratings and Ratios

First Trust Exchange-Traded Fund IV (FSIG) is a short-term bond ETF designed for investors seeking stability and income in their portfolios. Listed on the NYSE ARCA, FSIG manages over $1.28 billion in assets, focusing on investment-grade corporate debt securities. This fund is tailored for those looking to balance risk and return in the fixed-income sector, particularly in todays low-interest-rate environment.

FSIGs strategy centers on maintaining a portfolio with a weighted average duration close to the Bloomberg U.S. Corporate 1-5 Year Index, typically within a one-year bandwidth. This approach allows the fund to offer liquidity while keeping interest rate risk manageable. Up to 20% of its assets can be allocated to non-investment-grade securities, enabling the fund to capitalize on higher yields in the lower credit tiers when opportunities arise.

As a non-diversified fund, FSIG can take larger positions in specific securities, which may heighten credit risk but also allows for more targeted investment strategies. This structure is particularly beneficial for fund managers seeking to make tactical allocations in the corporate bond market. The funds focus on shorter-duration securities makes it an attractive option for risk-averse investors aiming to mitigate interest rate volatility while still generating income.