CAAA
First Trust AAA CMBS ETF
📎 Investment Objective
The First Trust AAA CMBS ETF (CAAA) seeks to provide investment results that correspond generally to the price and yield performance of the ICE BofA AAA US Fixed Rate Commercial Mortgage-Backed Securities Index.
Overview
ETF tracking First Trust AAA CMBS ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The First Trust AAA CMBS ETF (CAAA) seeks to provide investment results that correspond generally to the price and yield performance of the ICE BofA AAA US Fixed Rate Commercial Mortgage-Backed Securities Index.
🎯 Investment Strategy
The fund invests in a portfolio of investment-grade commercial mortgage-backed securities (CMBS) that are rated AAA. The fund's investment strategy is designed to track the performance of the underlying index.
✨ Key Features
- Exposure to high-quality, investment-grade CMBS securities
- Seeks to track the performance of the ICE BofA AAA US Fixed Rate CMBS Index
- Low expense ratio of 0.00%
- Relatively low volatility compared to other fixed income sectors
⚠️ Primary Risks
- Interest rate risk: The value of the fund's holdings may decline if interest rates rise
- Credit risk: The fund is exposed to the creditworthiness of the underlying CMBS issuers
- Liquidity risk: The CMBS market may experience periods of reduced liquidity, which could affect the fund's ability to sell its holdings
- Tracking error risk: The fund may not perfectly track the performance of its underlying index
👤 Best For
This ETF may be suitable for investors seeking exposure to high-quality, investment-grade commercial mortgage-backed securities as part of a diversified fixed income portfolio. It may be particularly attractive for investors looking for low-cost, passively managed exposure to the CMBS market.