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Upturn AI SWOT - About
First Trust Long Duration Opportunities ETF (LGOV)
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Upturn Advisory Summary
04/01/2025: LGOV (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit -1.77% | Avg. Invested days 32 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 232983 | Beta 1.48 | 52 Weeks Range 19.36 - 23.11 | Updated Date 04/1/2025 |
52 Weeks Range 19.36 - 23.11 | Updated Date 04/1/2025 |
Upturn AI SWOT
First Trust Long Duration Opportunities ETF
ETF Overview
Overview
The First Trust Long Duration Opportunities ETF (FDL) seeks to provide current income. It invests primarily in U.S. investment-grade fixed income securities with longer durations, aiming to capitalize on potential interest rate movements.
Reputation and Reliability
First Trust is a well-established ETF provider with a solid reputation for offering innovative and specialized investment products.
Management Expertise
First Trust has a team of experienced portfolio managers and analysts specializing in fixed-income strategies.
Investment Objective
Goal
To seek current income by investing in long-duration U.S. investment-grade fixed-income securities.
Investment Approach and Strategy
Strategy: The ETF does not track a specific index; rather, it uses a proprietary selection process to identify long-duration opportunities.
Composition The ETF holds primarily U.S. investment-grade corporate bonds, government bonds, and agency bonds with longer maturities.
Market Position
Market Share: Data not reliably available
Total Net Assets (AUM): 13900000
Competitors
Key Competitors
- TLT
- EDV
- VGLT
Competitive Landscape
The long-duration ETF market is dominated by a few large players, with First Trust's FDL holding a smaller market share. TLT is the market leader, with significant AUM and trading volume. FDL differentiates itself through its active management approach, aiming to outperform passive long-duration ETFs. It faces challenges in attracting assets due to its relatively higher expense ratio and the popularity of lower-cost passive alternatives. Active Management can offer better results, but is dependent upon skill.
Financial Performance
Historical Performance: Data not reliably available
Benchmark Comparison: Data not reliably available
Expense Ratio: 0.85
Liquidity
Average Trading Volume
The average trading volume is moderate and may vary depending on market conditions.
Bid-Ask Spread
The bid-ask spread is typically reasonable but can widen during periods of market volatility.
Market Dynamics
Market Environment Factors
Economic indicators such as inflation expectations, interest rate policy, and the overall health of the U.S. economy significantly influence FDL's performance. Changes in the yield curve and credit spreads also impact its returns.
Growth Trajectory
The growth trajectory of FDL is dependent on its ability to outperform its benchmark through active management and attract investor interest in a rising interest rate environment. Shifts in the yield curve will dramatically impact performance.
Moat and Competitive Advantages
Competitive Edge
FDL's competitive edge lies in its active management approach, which allows it to potentially outperform passive long-duration ETFs. The managers actively select securities and adjust the portfolio's duration based on their assessment of interest rate movements. The ETF's focus on investment-grade securities aims to mitigate credit risk. However, the fund has a higher expense ratio than many other passive long duration ETFs.
Risk Analysis
Volatility
FDL's volatility is generally high due to its long duration, making it sensitive to interest rate changes.
Market Risk
The primary market risk is interest rate risk, as rising rates can negatively impact the value of its long-duration bond holdings. Credit risk is mitigated by focusing on investment-grade securities, but it is not entirely eliminated.
Investor Profile
Ideal Investor Profile
FDL is suitable for sophisticated investors seeking current income and willing to take on significant interest rate risk. It may appeal to those who believe interest rates will remain stable or decline.
Market Risk
FDL is more suitable for long-term investors with a specific view on interest rate movements rather than active traders or passive index followers.
Summary
The First Trust Long Duration Opportunities ETF (FDL) provides current income through long-duration U.S. investment-grade bonds. It is actively managed, which aims for superior performance compared to passive ETFs, but comes with a higher expense ratio. FDL is highly sensitive to interest rate changes and carries interest rate risk. It is most appropriate for informed investors with a view on rates, rather than those looking for purely passive exposure.
Similar Companies
EDV
Vanguard Extended Duration Treasury Index Fund ETF Shares
EDV
Vanguard Extended Duration Treasury Index Fund ETF Shares
SCHQ
Schwab Long-Term U.S. Treasury ETF
SCHQ
Schwab Long-Term U.S. Treasury ETF
TLT
iShares 20+ Year Treasury Bond ETF
TLT
iShares 20+ Year Treasury Bond ETF
VGLT
Vanguard Long-Term Treasury Index Fund ETF Shares
VGLT
Vanguard Long-Term Treasury Index Fund ETF Shares
Sources and Disclaimers
Data Sources:
- First Trust Website
- ETF.com
- Morningstar
- Bloomberg
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
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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