Symbols

LMBS

First Trust Low Duration Opportunities ETF·NASDAQ

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Key Stats

Assets Under Management

6.07BUSD

Fund Flow (1Y)

1.10BUSD

Dividend Yield

4.09%

Discount / Premium to NAV

0.10%

Shares Outstanding

121.60M

Expense Ratio

0.66%

About First Trust Low Duration Opportunities ETF

Issuer

First Trust Advisors L.P.

Brand

First Trust

Home Page

https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=LMBS

Inception Date

Nov 4, 2014

Structure

Open-Ended Fund

Index Tracked

Management Style

Active

Dividend Treatment

Distributes

Distribution Tax Treatment

Ordinary income

Income Tax Type

Capital Gains

Max ST Capital Gains Rate

39.60%

Max LT Capital Gains Rate

20.00%

Primary Advisor

First Trust Advisors LP

Distributor

First Trust Portfolios LP

LMBS is an actively managed MBS ETF that has a duration target and reaches beyond agency-backed MBS to include non-agency and commercial MBS, for relative value and yield. As such, the portfolio carries material credit risk that is greater than that of pure-play agency-MBS funds. The fund's low-duration mandate increases its appeal to investors who are nervous about rising interest rates but LMBS' short-duration mandate can lead to high portfolio turnover, with further implications for holding costs. Institutions should work with market makers on block trades, as some underlying non-agency-backed MBS and CMBS can be hard to access.