First Trust Low Duration Opportunities ETF

Frequently Asked Questions About LMBS

What does LMBS invest in?

First Trust Exchange-Traded Fund IV - First Trust Low Duration Opportunities ETF is an exchange traded fund launched and managed by First Trust Advisors LP. It invests in the fixed income markets of the United States. The fund invests in investment grade mortgage-related debt securities including residential mortgage-backed securities, commercial mortgage-backed securities, stripped mortgage-backed securities, and collateralized mortgage obligations which are issued or guaranteed by the government or its agencies or instrumentalities. The fund invents in securities with an average maturity of less than three years. It seeks to benchmark the performance of its portfolio against the ICE BofA 1-5 Year US Treasury & Agency Index and the Bloomberg US Aggregate Bond Index. First Trust Exchange-Traded Fund IV - First Trust Low Duration Opportunities ETF was formed on November 4, 2014 and is domiciled in the United States.

What is the expense ratio of LMBS?

First Trust Low Duration Opportunities ETF (LMBS) charges an expense ratio of 0.66%. This is the annual fee deducted from fund assets to cover management and operations.

What is LMBS's dividend yield?

LMBS's trailing-twelve-month yield is 4.12%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of LMBS?

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

What is the credit quality of LMBS?

LMBS'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 LMBS?

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