ETF Evaluator: First Trust SSI Strat Convert Secs ETF () Follow This ETF

First Trust SSI Strat Convert Secs ETF Overview

First Trust SSI Strat Convert Secs ETF (FCVT) is an actively managed Allocation Convertibles exchange-traded fund (ETF). First Trust launched the ETF in 2015.

The investment seeks total return. Under normal market conditions, the fund seeks to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of U.S. and non-U.S. convertible securities. In general, convertible securities combine the investment characteristics of bonds and common stocks and typically consist of debt securities or preferred securities that may be converted or exchanged within a specified period of time into a certain amount of common stock or other equity security of the same or a different issuer.

About First Trust SSI Strat Convert Secs ETF (FCVT)

There are 5 members of the management team with an average tenure of 9.88 years: Stephen Wachtel (2020), Ravi Malik (2015), Michael Opre (2015), Florian Eitner (2015) and George Douglas (2015). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA All US Convertible TR USD index with a weighting of 100%. First Trust SSI Strat Convert Secs ETF has 124 securities in its portfolio. The top 10 holdings constitute 25.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust SSI Strat Convert Secs ETF is part of the Hybrid Securities global asset class and is within the Allocation ETF group. First Trust SSI Strat Convert Secs ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 6.3% There is 0.0% allocated to foreign stock, and 18.4% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 73.6% convertible bond). First Trust SSI Strat Convert Secs ETF has 1.7% of the portfolio in cash.

Assets Under Management

The fund has $100 million in total assets, which is below the $2 billion average for the Convertibles category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FCVT Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust SSI Strat Convert Secs ETF expense ratio is high compared to funds in the Convertibles category. First Trust SSI Strat Convert Secs ETF has an expense ratio of 0.95%, which is 52% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust SSI Strat Convert Secs ETF has a portfolio turnover rate of 122%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 79% for the Convertibles category.

Recently, in the month of July 2026, First Trust SSI Strat Convert Secs ETF returned -8.4%, which earned it a grade of F, as the Convertibles category had an average return of -4.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust SSI Strat Convert Secs ETF has a trailing yield of 1.14%, which is below the 1.40% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust SSI Strat Convert Secs ETF Grades

Year to date, the ETF has returned 14.7%, 0.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 25.2% over the past year (grade of B), 15.6% over the past three years (grade of A) and 5.3% per year over the past five years (grade of F) and 11.1% per year over the past 10 years (grade of F).

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