LGOV
First Trust Long Duration Opportunities ETF
📎 Investment Objective
The First Trust Long Duration Opportunities ETF (LGOV) seeks to provide exposure to long-duration fixed income securities in order to generate income and capital appreciation.
Overview
ETF tracking First Trust Long Duration Opportunities ETF
Performance
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Investment Summary
📎 Investment Objective
The First Trust Long Duration Opportunities ETF (LGOV) seeks to provide exposure to long-duration fixed income securities in order to generate income and capital appreciation.
🎯 Investment Strategy
The fund invests primarily in long-duration U.S. government bonds and other long-duration fixed income securities. The portfolio is actively managed to take advantage of opportunities in the long-end of the yield curve.
✨ Key Features
- Focuses on long-duration U.S. government and investment-grade fixed income securities
- Actively managed strategy to capitalize on long-term interest rate movements
- Potential for income generation and capital appreciation from long-duration bond exposure
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Interest rate risk - the fund's long-duration positioning makes it sensitive to changes in long-term interest rates
- Credit risk - the fund is exposed to the creditworthiness of its bond holdings
- Liquidity risk - long-duration bonds may have lower liquidity compared to shorter-term securities
- Concentration risk - the fund's focus on long-duration government bonds means it has limited diversification
👤 Best For
This ETF may be suitable for investors seeking exposure to long-duration fixed income as part of a diversified portfolio, particularly those with a longer investment horizon who can tolerate the interest rate sensitivity of the fund.