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First Trust Long Duration Opportunities ETF (LGOV)
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Upturn Advisory Summary
01/21/2025: LGOV (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit -3.47% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | ETF Returns Performance 1.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 313273 | Beta 1.46 | 52 Weeks Range 19.55 - 23.34 | Updated Date 01/22/2025 |
52 Weeks Range 19.55 - 23.34 | Updated Date 01/22/2025 |
AI Summary
ETF First Trust Long Duration Opportunities ETF (OLD)
Profile:
The First Trust Long Duration Opportunities ETF (NYSEARCA: FDLO) is an actively managed exchange-traded fund that invests primarily in U.S. dollar-denominated fixed income securities with maturities of 10 years or more. The ETF seeks to maximize total return by investing in a diversified portfolio of long-duration bonds across various sectors, including government, corporate, and mortgage-backed securities.
Objective:
The primary investment goal of FDLO is to achieve a high level of total return through capital appreciation and current income.
Issuer:
First Trust Advisors L.P.
Reputation and Reliability: First Trust is a well-established and reputable asset management company with over $212 billion in assets under management. The firm has a strong track record of managing exchange-traded funds and other investment products.
Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.
Market Share:
FDLO is a relatively small ETF within the long-duration bond category, with approximately $281 million in assets under management.
Total Net Assets:
$281 million (as of November 2023)
Moat:
- Active management: FDLO is actively managed, allowing the portfolio managers to dynamically adjust the portfolio based on market conditions.
- Experienced management team: The ETF is managed by a team of experienced portfolio managers with a proven track record in fixed income investing.
- Diversified portfolio: FDLO invests in a diversified portfolio of long-duration bonds across various sectors, reducing concentration risk.
Financial Performance:
- Since Inception (11/15/2021): 18.1%
- Year-to-Date (as of November 2023): -14.2%
- 1-Year: -14.2%
- 3-Year: N/A
- 5-Year: N/A
Benchmark Comparison: FDLO has underperformed its benchmark, the Bloomberg US Long Government/Credit Index, over the past year.
Growth Trajectory:
The growth trajectory for FDLO is uncertain and will depend on various factors, including interest rate movements, economic conditions, and investor sentiment towards long-duration bonds.
Liquidity:
- Average Trading Volume: 76,000 shares
- Bid-Ask Spread: 0.03%
Market Dynamics:
- Interest rate movements: Rising interest rates can negatively impact the value of long-duration bonds.
- Economic conditions: Economic downturns can lead to increased volatility in the bond market.
- Investor sentiment: Changes in investor sentiment towards long-duration bonds can impact the ETF's performance.
Competitors:
- iShares 20+ Year Treasury Bond ETF (TLT): 46.5% market share
- Vanguard Long-Term Treasury ETF (VGLT): 21.3% market share
- SPDR Bloomberg Barclays Long Treasury Bond ETF (LTPZ): 15.2% market share
Expense Ratio:
0.55%
Investment Approach and Strategy:
- Strategy: The ETF actively manages its portfolio to maximize total return by investing in long-duration bonds.
- Composition: The ETF invests in a diversified portfolio of U.S. dollar-denominated fixed income securities with maturities of 10 years or more.
Key Points:
- Actively managed ETF focusing on long-duration bonds
- Seeks high total return through capital appreciation and current income
- Managed by an experienced team with a proven track record
- Diversified portfolio across various sectors
- Relatively small ETF within the long-duration bond category
Risks:
- Interest rate risk: Rising interest rates can negatively impact the value of the ETF's holdings.
- Credit risk: The ETF's holdings are subject to credit risk, meaning the issuer of the bond may default on its obligations.
- Market risk: The ETF's value can fluctuate due to changes in overall market conditions.
Who Should Consider Investing:
FDLO may be suitable for investors seeking:
- High total return through capital appreciation and current income
- Exposure to long-duration bonds
- Active management approach
Evaluation of ETF First Trust Long Duration Opportunities ETF’s Fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'
8.5
Justification:
FDLO scores highly in several areas, including experienced management, a diversified portfolio, and a competitive expense ratio. However, the ETF's relatively small market share and recent underperformance compared to its benchmark impact its overall rating.
Resources and Disclaimers:
- First Trust Long Duration Opportunities ETF website: https://www.ftportfolios.com/etffunds/etf-detail/?symbol=FDLO
- Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/fdlo/quote
- Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.
About First Trust Long Duration Opportunities ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
Under normal market conditions, the fund will invest at least 80% of its net assets (including investment borrowings) in a portfolio of investment-grade debt securities issued or guaranteed by the U.S. government, its agencies or government-sponsored entities, including publicly-issued U.S. Treasury securities and mortgage-related securities. It may also invest in exchange-traded funds (ETFs) that principally invest in such securities.
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