First Trust TCW Opportunistic Fixed Income ETF

The fund seeks to maximize total return in the long term by investing in companies outside the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in fixed income securities.

In selecting securities for the portfolio, the research team focuses on companies that are trading at a discount to their estimated intrinsic value.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may invest in mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, and U.S. government-sponsored entities.

The fund may also invest in preferred stock and common stock.

Additionally, the fund may invest up to 25% of its net assets in derivatives instruments that are traded over-the-counter to reduce currency, interest rate or credit risk.

The fund may invest up to 35% of its net assets in corporate, non-U.S. and non-agency debt and other securities rated below investment grade, or, if unrated, to be of comparable quality.

The fund may also invest in distressed securities.

In addition, the fund may also invest up to 20% of its net assets in securities denominated in non-U.S. currencies and securities of issuers with significant ties to emerging market countries.