| Investment Objective: |
The First Trust Commercial Mortgage Opportunities ETF seeks to maximize long-term total return. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in commercial mortgage-backed securities ("CMBS"). The Fund intends to invest at least 80%, and generally expects to invest at least 90% of its net assets in CMBS with a "AAA" rating (or equivalent) at the time of purchase, as determined by at least one nationally recognized statistical rating organization ("NRSRO"). The Fund will not invest in CMBS with a rating below "A-" (or equivalent) at the time of purchase. However, after purchase, a CMBS may have its rating reduced below the minimum rating required by the Fund for purchase. The Fund seeks to achieve its objective by investing in a portfolio of CMBS. CMBS typically represent an interest in a pool of commercial mortgage loans in the form of fixed and floating rate securities. The Fund will invest primarily in non-agency CMBS. The Fund may also invest in restricted CMBS and interest or principal only CMBS. |
