First Trust Long Duration Opportunities ETF

Frequently Asked Questions About LGOV

What does LGOV invest in?

The primary aim of the First Trust Long Duration Opportunities ETF (the "Fund") is to generate consistent income while prioritizing the protection of capital. Under typical market conditions, the Fund will commit a minimum of 80% of its net assets (including funds obtained through borrowing) to a portfolio of high-quality debt instruments. These securities are issued or guaranteed by the U.S. government, its agencies, or government-sponsored entities, encompassing publicly issued U.S. Treasury securities and mortgage-related securities. Additionally, the Fund has the flexibility to invest in exchange-traded funds (ETFs) that predominantly hold these types of securities. To acquire mortgage-related securities, the Fund may engage in "to-be-announced" (TBA) transactions, which include practices such as mortgage dollar rolls.

What is the expense ratio of LGOV?

First Trust Long Duration Opportunities ETF (LGOV) charges an expense ratio of 0.49%. This is the annual fee deducted from fund assets to cover management and operations.

What is LGOV's dividend yield?

LGOV's trailing-twelve-month yield is 4.39%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of LGOV?

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

What is the credit quality of LGOV?

LGOV'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 LGOV?

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