FT Strategic Fixed Income ETF, Series 14
Ticker Symbol: FLTXAX
Holdings (As of Day of Deposit) |
Ticker |
Name |
Initial
Weight |
Price* |
HYBRID FIXED INCOME |
FPEI |
First Trust Institutional Preferred Securities and Income ETF |
5.00% |
$18.42 |
INTERNATIONAL – EMERGING MARKETS |
FEMB |
First Trust Emerging Markets Local Currency Bond ETF |
7.50% |
27.33 |
U.S. CORPORATE – HIGH YIELD |
FTSL |
First Trust Senior Loan Fund |
12.50% |
46.00 |
HYLS |
First Trust Tactical High Yield ETF |
30.00% |
40.85 |
U.S. CORPORATE – INVESTMENT GRADE |
FIIG |
First Trust Intermediate Duration Investment Grade Corporate ETF |
7.50% |
20.54 |
U.S. GOVERNMENT |
LGOV |
First Trust Long Duration Opportunities ETF |
10.00% |
21.31 |
U.S. MORTGAGE-BACKED |
LMBS |
First Trust Low Duration Opportunities ETF |
7.50% |
48.36 |
U.S. OPPORTUNISTIC CORE |
FIXD |
First Trust TCW Opportunistic Fixed Income ETF |
20.00% |
43.36 |
* As of the close of business on 6/26/24.
Market values are for reference only and are not indicative of your individual
cost basis.
Not FDIC Insured Not Bank Guaranteed May Lose Value |
Portfolio Summary |
Initial Date of Deposit |
6/27/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
10/7/2025 |
Weighted Average 30-Day SEC Yield* |
5.52% |
Weighted Average Unsubsidized 30-Day SEC Yield* |
5.56% |
Historical 12-Month Distribution Rate of Trust Holdings:** |
4.98% |
Historical 12-Month Distribution Per Unit:** |
$0.4982 |
Cash CUSIP |
30336G148 |
Reinvestment CUSIP |
30336G155 |
Fee Accounts Cash CUSIP |
30336G163 |
Fee Accounts Reinvestment CUSIP |
30336G171 |
*These figures were calculated on 6/25/24 based on the most recent data available (5/31/24) and take into
account sales charges, annual operating expenses or organization costs of the trust. SEC yields used in the
calculation are as reported by the underlying ETF fund sponsor and are generally updated on a monthly basis.
The SEC yield is calculated by dividing the net investment income per share earned during the most recent
30-day period by the maximum offering price per share on the last day of the period and includes the effects
of fee waivers and expense reimbursements, if applicable. The weighted average unsubsidized 30-day SEC
yield excludes contractual fee waivers and expense reimbursements.
**There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions
in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of
the securities included in the trust are for illustrative purposes only and are not indicative of the trust’s
distribution or distribution rate. The historical 12-month distribution per unit is based on the weighted
average of the trailing 12-month distributions paid by the securities included in the portfolio. The historical
12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust’s
offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees
and expenses, which will be incurred when investing in a trust. Distributions may include realized short
term capital gains, realized long-term capital gains and/or return of capital. Certain of the issuers may have
reduced their dividends or distributions over the prior 12 months. The distribution per unit and rate paid by
the trust may be higher or lower than the amount shown above due to certain factors that may include, but
are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the
sale of securities in the portfolio.
Trust Specifics |
Weighted Average Maturity:1 |
5.14 years |
Weighted Average Effective Duration:2 |
4.92 years |
|
Credit Quality3 |
Weighted Average |
|
Credit Quality3 |
Weighted Average |
Government |
28.32% |
|
BB- |
3.68% |
Cash |
0.63% |
|
B+ |
6.15% |
AAA |
2.00% |
|
B |
7.83% |
AA+ |
0.11% |
|
B- |
6.33% |
AA |
0.57% |
|
CCC+ |
4.91% |
AA- |
0.77% |
|
CCC |
1.04% |
A+ |
1.03% |
|
D |
0.59%
|
A |
2.25% |
|
NR |
0.11% |
A- |
2.62% |
|
|
|
BBB+ |
3.71% |
|
|
|
BBB |
6.63% |
|
|
|
BBB- |
9.31% |
|
|
|
BB+ |
3.62% |
|
|
|
BB |
6.42% |
|
|
|
|
|
|
|
|
1As of 5/31/24. Weighted average maturity represents the average amount of time remaining until the bonds
held in the underlying ETFs mature, taking into account each bond’s weight within the ETFs based on its
market value. This figure is based on approximately 78% of the portfolio as certain funds have either not
provided maturity data or don’t invest in bonds. |
2As of 5/31/24. Weighted average effective duration is a measure of a portfolio’s sensitivity to interest rate
changes that reflects the change in its price given a change in yield. It accounts for the likelihood of changes
in the timing of cash flows in response to interest rate movements. The net weighted average effective
duration, which includes short positions, is used for LMBS and HYLS. |
3As of 5/31/24. Credit ratings are weighted averages of the funds’ underlying holdings. A credit rating is an
assessment provided by an nationally recognized statistical rating organization (NRSRO), including Standard
& Poor’s Rating Group, of the creditworthiness of an issuer with respect to its debt obligations. Ratings are
measured highest to lowest on a scale that generally ranges from AAA to D for long-term ratings. Investment
grade is defined as those issuers that have a long-term credit rating of BBB- or higher. “NR” indicates no
rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in
the funds, and not to the funds or their shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed
securities appear under Government. Credit ratings are subject to change. |
Sales Charges (based on a $10 public offering
price) |
Standard Accounts |
Transactional Sales Charges |
Initial: |
0.00% |
|
Deferred: |
1.50% |
Maximum Sales Charge |
|
1.50% |
The deferred sales charge will be deducted in three monthly installments commencing 10/18/24. When the
public offering price is less than or equal to $10.00 per unit, there will be no initial sales charge. If the price
exceeds $10.00 per unit, you will pay an initial sales charge. Standard accounts sales charges apply to units
purchased as an ineligible asset. In addition to the sales charges listed, UITs are subject to annual operating
expenses and organization costs.
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully before investing. Contact your financial professional
or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus,
which contains this and other information about the portfolio. Read it carefully
before you invest.
Risk Considerations
An investment in this unmanaged unit investment trust should be made
with an understanding of the risks involved with owning ETFs and fixed income securities.
ETFs are subject to various risks, including management’s ability to meet the fund’s investment objective,
and to manage the fund’s portfolio when the underlying securities are redeemed or sold, during periods of
market turmoil and as investors’ perceptions regarding ETFs or their underlying investments change. Unlike
open-end funds, which trade at prices based on a current determination of the fund’s net asset value, ETFs
frequently trade at a discount from their net asset value in the secondary market.
Certain of the funds held by the trust invest in derivatives such as swap agreements to gain inverse exposure
to its target index. As such, the funds will be subject to credit risk with respect to the amount it expects
to receive from counterparties to derivatives and repurchase agreements entered into by the funds. If a
counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the
value of the trust’s investment in the funds may decline.
Certain of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the
interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest
rate benchmark. As a result, the yield on such a security will generally decline in a falling interest rate
environment, causing the trust to experience a reduction in the income it receives from such securities.
Certain of the funds invest in high-yield securities or “junk” bonds. Investing in high-yield securities should be
viewed as speculative and you should review your ability to assume the risks associated with investments
which utilize such securities. High-yield securities are subject to numerous risks, including higher interest
rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of
interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and
are affected by short-term credit developments to a greater degree.
All of the funds invest in investment grade securities. Investment grade securities are subject to numerous
risks including higher interest rates, economic recession, deterioration of the investment grade security
market or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.
Certain of the funds invest in limited duration bonds. Limited duration bonds are subject to interest rate risk,
which is the risk that the value of a security will fall if interest rates increase. While limited duration bonds
are generally subject to less interest rate sensitivity than longer duration bonds, there can be no assurance
that interest rates will not rise during the life of the trust.
Certain of the funds invest in mortgage-backed securities. Rising interest rates tend to extend the
duration of mortgage-backed securities, making them more sensitive to changes in interest rates, and may
reduce the market value of the securities. In addition, mortgage-backed securities are subject to prepayment
risk, the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest
rates decline.
Certain of the funds invest in preferred securities. Preferred securities are sensitive to changes in interest rates
and the market price generally falls with rising interest rates. Preferred securities are more likely to be called
for redemption in a declining interest rate environment. Preferred securities are typically subordinated to
bonds and other debt instruments in a company’s capital structure, in terms of priority to corporate income,
and therefore will be subject to greater credit risk than those debt instruments.
Certain of the funds invest in senior loans. The yield on funds which invest in senior loans will generally
decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans
are generally below investment grade quality (“junk” bonds). An investment in senior loans involves the risk
that the borrowers may default on their obligations to pay principal or interest when due.
Certain of the funds invest in covenant-lite loans which contain fewer or no maintenance covenants and
may hinder the funds’ ability to reprice credit risk and mitigate potential loss especially during a downturn
in the credit cycle.
Certain of the funds invest in U.S. Treasury obligations which are subject to numerous risks including higher
interest rates, economic recession and deterioration of the bond market or investors’ perceptions thereof.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks,
withholding, the lack of adequate financial information, and exchange control restrictions impacting non-
U.S. issuers.
As the use of Internet technology has become more prevalent in the course of business, the trust has become
more susceptible to potential operational risks through breaches in cybersecurity.
Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease.
It is important to note that an investment can be made in the underlying funds directly rather than through
the trust. These direct investments can be made without paying the trust’s sales charge, operating expenses
and organization costs.
The value of the securities held by the trust may be subject to steep declines or increased volatility due to
changes in performance or perception of the issuers.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.
For a discussion of additional risks of investing in the trust see the “Risk Factors” section of the prospectus.