First Trust Long Duration Opportunities ETF (LGOV)
About First Trust Long Duration Opportunities ETF (LGOV)
Under normal market conditions, the Fund will invest at least 80 percent of its net assets (including investment borrowings) in a portfolio of investment-grade debt securities issued or guaranteed by the U.S. government, its agencies or government-sponsored entities, including publicly-issued U.S. Treasury securities and mortgage-related securities. The Fund may also invest in exchange-traded funds (ETFs) that principally invest in such securities. As discussed in more detail below, the Fund may purchase mortgage-related securities in to-be-announced transactions (TBA Transactions), including mortgage dollar rolls. The Fund includes cash set aside or otherwise held as collateral for settling mortgage dollar rolls and other TBA Transactions towards its 80 percent investment requirement. The Funds investment advisor seeks to manage the Funds portfolio to have a weighted average effective duration of eight or more years. Duration, which is discussed in more detail below, measures a debt securitys expected life on a present value basis, taking into account the debt securitys yield, interest payments and final maturity.
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First Trust Long Duration Opportunities ETF News
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Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate and when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the standardized performance data quoted. Select the Standardized Performance link for the latest quarterly performance.