Key stats
About First Trust Exchange-Traded Fund IV FT Vest Investment Grade & Target Income ETF
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Inception date
Feb 13, 2025
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Ordinary income
Primary advisor
First Trust Advisors LP
Distributor
First Trust Portfolios LP
LQTI is an actively managed fund that aims for an annual rate of approximately 5%, before fees and expenses, above the current annual income yield of the iShares iBoxx Investment Grade Corporate Bond ETF (LQD). The underlying ETF holds USD-denominated, investment grade corporate bonds of any maturity. To achieve its objectives, the fund provides synthetic exposure to LQD while utilizing a partial call writing strategy. Synthetic exposure to the underlying ETF is achieved through a combination of purchased call options and short-term US Treasurys. The fund then sells weekly, at-the-money FLEX call options on the underlying ETF, which are either cash settled and/or physically settled European style FLEX Options or physically settled American style exchange-traded options. Overall, LQTI aims to provide monthly distributions from the FLEX Option Discount, US Treasury securities, and option premiums. However, there is no guarantee that the funds distribution target will be obtained.
Classification
What's in the fund
Exposure type
Rights & Warrants
Stock breakdown by region
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