First Trust launched an active short maturity ETF this morning


The First Trust Enhanced Short Maturity ETF (NASDAQ:FTSM) is an actively managed fund which invests in short-duration, investment-grade securities with the objective of delivering current income while providing capital preservation.

"Over the past few years, in this low interest rate environment, investors in short-term bonds have often been faced with a choice between losing purchasing power safely in high quality bonds with negative real returns, or seeking higher returns from securities that are below investment-grade," said Ryan Issakainen, Senior Vices President and ETF Strategist at First Trust, in a statement.

The active strategy of the ETF could provide a middle ground for investors looking for short-term securities that could potential offer a high return, but still preserve capital and avoid daily liquidity concerns.

Other short-term investment grade ETFs: VCSH, CSJ, SCPB, SLQD, RAVI, MINC

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