FTSM

📎 Investment Objective

The First Trust Enhanced Short Maturity ETF (FTSM) seeks to provide a high level of current income consistent with preservation of capital and daily liquidity.

✨ Key Features

• Focuses on short-term, high-quality fixed-income securities to provide current income and capital preservation
• Maintains a weighted average maturity of 60 days or less to limit interest rate risk
• Provides daily liquidity for investors seeking a cash management or short-term fixed income solution
• Expense ratio of 0.00% makes it a low-cost option for short-term fixed income exposure

⚠️ Primary Risks

• Interest rate risk: The fund's value may decline if interest rates rise, as the prices of existing bonds with lower yields fall
• Credit risk: The fund is exposed to the risk of default or downgrade of the underlying fixed-income securities
• Liquidity risk: There is no guarantee that a liquid market will exist for the fund's holdings, which could limit its ability to sell securities at favorable prices
• Counterparty risk: The fund is exposed to the risk that a counterparty, such as in a repurchase agreement, may default on its obligations

👤 Best For

FTSM may be suitable for investors seeking a low-risk, short-term fixed income investment to preserve capital and generate current income, such as those with a conservative risk tolerance or a need for cash management. However, investors should be aware of the fund's interest rate and credit risks.