First Trust AAA CMBS ETF

Frequently Asked Questions About CAAA

What does CAAA invest in?

The First Trust AAA CMBS ETF aims to deliver the maximum possible long-term total return to its investors. Under normal market conditions, the Fund dedicates a significant portion—at least 80%—of its net assets (including any capital borrowed for investment purposes) to commercial mortgage-backed securities (CMBS). At the time of purchase, these CMBS must possess a 'AAA' credit rating or an equivalent high quality, as confirmed by at least one nationally recognized statistical rating organization (NRSRO). Alternatively, if a security is unrated, the Fund's Advisor will determine that it has a comparable credit quality at the point of acquisition.

What is the expense ratio of CAAA?

First Trust AAA CMBS ETF (CAAA) charges an expense ratio of 0.30%. This is the annual fee deducted from fund assets to cover management and operations.

What is CAAA's dividend yield?

CAAA's trailing-twelve-month yield is 5.03%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of CAAA?

Effective duration measures CAAA's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. CAAA's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of CAAA?

CAAA's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of CAAA?

Yield to maturity (YTM) is the total return you'd earn from CAAA if every bond in the portfolio is held to maturity at the current price. CAAA's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.