First Trust Core Investment Grade ETF

Frequently Asked Questions About FTCB

What does FTCB invest in?

The First Trust Core Investment Grade ETF (the "Fund") aims to maximize its long-term total return. Under typical market conditions, the Fund endeavors to invest its entire "Investment Portfolio" in high-quality, investment-grade securities. To qualify as investment-grade, a security must, at the time of purchase, carry a credit rating of at least Baa3/BBB- from a nationally recognized statistical rating organization (NRSRO). Alternatively, if unrated, it must be determined by the Fund's investment advisor to possess equivalent credit quality. This "Investment Portfolio" exclusively consists of such investment-grade securities hand-picked by the Fund's portfolio managers. It specifically excludes any uninvested cash or other fund assets not directly tied to its core investment strategy, including, but not limited to, outstanding receivables or assets acquired through an issuer's financial restructuring.

What is the expense ratio of FTCB?

First Trust Core Investment Grade ETF (FTCB) charges an expense ratio of 0.56%. This is the annual fee deducted from fund assets to cover management and operations.

What is FTCB's dividend yield?

FTCB's trailing-twelve-month yield is 5.53%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of FTCB?

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

What is the credit quality of FTCB?

FTCB'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 FTCB?

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