First Trust Files Floating-Rate ETF With Majority Allocation to CLOs

The First Trust Investment Grade Floating Rate Income ETF (FFLT) will invest in investment-grade floating-rate debt, with at least 80% of net assets allocated to the asset class and at least 50% invested specifically in collateralized loan obligations (CLOs). The actively-managed strategy may also hold asset-backed and mortgage-related securities, including CMBS and RMBS, alongside corporate bonds, bank loans and government-backed debt. Eligible securities generally must carry an investment-grade rating or be judged by the adviser to have comparable credit quality. The fund may invest in both agency and non-agency mortgage securities, including interest-only and principal-only structures, and will operate as a non-diversified ETF.