First Trust High Income Long/Short Fund

Frequently Asked Questions About FSD

What does FSD invest in?

The First Trust High Income Long/Short Fund, known by its ticker FSD, is a U.S.-domiciled, closed-ended investment vehicle primarily focused on fixed-income securities. Established on June 18, 2010, it is managed by First Trust Advisors, L.P., with MacKay Shields LLC serving as co-manager. The fund's objective is to achieve high income by investing in fixed-income markets globally. Its portfolio predominantly consists of high-yield corporate debt instruments, such as bonds, debentures, notes, and commercial papers, which are typically rated below investment grade and have diverse maturity dates. To construct its holdings, the fund employs a combination of fundamental analysis and a long/short strategy. This rigorous analytical process evaluates factors like the type, size, and cost of individual securities, scrutinizes the financial health, creditworthiness, and cash flow generation of issuing companies, and considers broader market influences. The fund's performance is measured against the Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index.

What is the expense ratio of FSD?

First Trust High Income Long/Short Fund (FSD) charges an expense ratio of 0.00%. This is the annual fee deducted from fund assets to cover management and operations.

What is the duration of FSD?

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

What is the credit quality of FSD?

FSD'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 FSD?

Yield to maturity (YTM) is the total return you'd earn from FSD if every bond in the portfolio is held to maturity at the current price. FSD'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.

How big is FSD?

First Trust High Income Long/Short Fund (FSD) manages $406.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.