First Trust Advisors has launched a new actively managed exchange-traded fund to bet on preferred securities and income-producing debt securities, including corporate bonds, high-yield securities and convertible securities.

The First Trust Preferred Securities and Income ETF (FPE) will be subadvised by Stonebridge Advisors, a Wilton, CT-based Registered Investment Advisor. The fund sports an expense ratio of 85 basis points.

“This fund’s structure as an actively managed ETF gives us the opportunity to manage the Fund not only to seek income and total return, but to react to market conditions and work to safeguard capital during changes in the market, especially if interest rates start to rise,” stated Scott Fleming, president and chief investment officer of Stonebridge and the fund’s portfolio manager.

 

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