First Trust Advisors L.P. has launched a new actively managed exchange-traded fund (ETF) that will invest at least 80 percent of its assets in institutional and debt securities.
First Trust recently announced the launch of the ETF, First Trust Institutional Preferred Securities and Income (FPEI), and said the fund will invest in institutional preferred securities and income-producing debt securities subadvised by Stonebridge Advisors LLC, according to a press release.
“The new fund, FPEI, will be a pure play on the institutional preferred securities market, which is not easily accessible to retail investors and that we believe offers great value in the current market environment from both an income and relative value standpoint,” Robert Wolf, Stonebridge senior vice president and senior portfolio manager, said in the release.
"We believe this ETF will be an effective tool for investment advisors seeking to generate income for their clients, while helping to enhance portfolio diversification through the use of institutional preferred securities, which are absent from many preferred securities ETFs," Ryan Issakainen, First Trust senior vice president, exchange-traded fund strategist, said in the release.
First Trust, based in Wheaton, has collective assets under management of about $109 billion through unit ETFs, closed-ended funds, investment trusts, separately managed accounts and mutual funds.