ETF Evaluator:
First Trust Enhanced Short Maturity ETF ()
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(as of Nov 13)
Best Performing in Ultrashort Bond Over the Last Year
| 5.0% | NEOS Enhanced Inc 1-3 Month T-Bill ETF (CSHI) |
| 4.8% | iShares Interest Rate Hdg L/T Corp BdETF (IGBH) |
| 4.6% | American Century® Ultrashort Income ETF (FUSI) |
| 4.6% | iShares Interest Rate Hedged Corp Bd ETF (LQDH) |
| 4.5% | VanEck IG Floating Rate ETF (FLTR) |
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ETF Details
First Trust Enhanced Short Maturity ETF Overview
First Trust Enhanced Short Maturity ETF (FTSM) is an actively managed Taxable Bond Ultrashort Bond exchange-traded fund (ETF). First Trust launched the ETF in 2014.
The investment seeks current income, consistent with preservation of capital and daily liquidity.
Under normal market conditions, the Advisor intends to achieve its investment objective by investing at least 80% of its net assets in a portfolio of U.S. dollar-denominated fixed- and variable-rate debt securities. Normally the fund's portfolio is expected to have an average duration of less than one year and an average maturity of less than three years.
About First Trust Enhanced Short Maturity ETF (FTSM)
There are 6 members of the management team with an average tenure of 5.30 years: Scott Skowronski (2022), Jeremiah Charles (2014), Owen Aronson (2025), Buo Zhang (2025), Charles Kovarik (2026) and Todd Larson (2014). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: ICE BofA 0-1Y US Trsy TR USD index with a weighting of 100%. First Trust Enhanced Short Maturity ETF has 742 securities in its portfolio. The top 10 holdings constitute 5.3% 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 Enhanced Short Maturity ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. First Trust Enhanced Short Maturity ETF has 12.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 77.8% (65.6% domestic bond, 12.2% foreign bond and 0.0% convertible bond). First Trust Enhanced Short Maturity ETF has 22.2% of the portfolio in cash.
Assets Under Management
The fund has $6 billion in total assets, which is above the $5 billion average for the Ultrashort Bond 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.
FTSM 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 Enhanced Short Maturity ETF expense ratio is below average compared to funds in the Ultrashort Bond category. First Trust Enhanced Short Maturity ETF has an expense ratio of 0.29%, which is 32% 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 Enhanced Short Maturity ETF has a portfolio turnover rate of 76%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 59% for the Ultrashort Bond category.
Recently, in the month of October 2026, First Trust Enhanced Short Maturity ETF returned 0.5%, which earned it a grade of A, as the Ultrashort Bond category had an average return of 0.4%. 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 Enhanced Short Maturity ETF has a trailing yield of 4.10%, which is above the 3.96% 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 Enhanced Short Maturity ETF Grades
Year to date, the ETF has returned 2.9%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.6% over the past year (grade of D), 4.7% over the past three years (grade of D) and 3.7% per year over the past five years (grade of D) and 2.6% per year over the past 10 years (grade of D).
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FTSM Trailing NAV Total Returns Data as of 10/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FTSM Return (NAV) | 0.5% | 0.8% | 3.6% | 4.7% | 3.7% | 2.6% |
| FTSM Return (Price) | 0.5% | 0.8% | 3.6% | 4.7% | 3.7% | 2.6% |
| NAV +/- Price Return | 0.050% | 0.051% | 0.052% | 0.012% | 0.000% | -0.002% |
| Ultrashort Bond Avg | 0.4% | 0.9% | 3.8% | 5.0% | 4.1% | 3.0% |
| FTSM Grade (NAV) | A | D | D | D | D | D |
| +/- Category (NAV) | 0.1% | -0.0% | -0.2% | -0.4% | -0.3% | -0.4% |
| FTSM Tax-Cost Ratio | na | na | 1.7% | 1.8% | 1.5% | 1.1% |
FTSM Annual NAV Total ReturnsData as of 10/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FTSM Return (NAV) | 2.9% | 4.6% | 5.2% | 5.2% | 1.0% | 0.0% | 1.1% | 2.8% | 1.9% | 1.5% | 1.1% |
| FTSM Return (Price) | 2.9% | 4.7% | 5.2% | 5.1% | 1.0% | -0.0% | 1.1% | 2.8% | 1.9% | 1.5% | 1.2% |
| NAV +/- Price Ret | -0.018% | 0.008% | 0.003% | -0.010% | 0.052% | -1.221% | -0.015% | -0.0% | 4.6% | -5.5% | 9.0% |
| Ultrashort Bond Avg | 3.1% | 4.8% | 5.8% | 6.0% | 0.4% | 0.3% | 1.4% | 3.6% | 1.4% | 2.3% | 1.9% |
| FTSM Grade (NAV) | D | D | F | D | B | C | C | D | B | C | D |
| +/- Category | -0.2% | -0.2% | -0.6% | -0.9% | 0.5% | -0.3% | -0.3% | -0.8% | 0.5% | -0.7% | -0.8% |
| Risk Measures | |
| Beta: | 0.06 |
| R-Squared: | 71% |
| Standard Deviation: | 0.5% |
| Category Risk Index: | 0.79 |
| Category Risk Rating: | Average |
| Total Risk Index: | 0.04 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.1% |
| Total Assets: | $ 6,800 Mil |
| Share Class Assets: | $ 6,800 Mil |
| Turnover: | 76.0% |
| Expense Ratio: | 0.29% |
| Index Fund: | No |
| Index Tracked: | ICE BofA 0-1Y US Trsy TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 6 | |||
| Longest Tenure: 12.3 years | |||
| Average Tenure: 5.3 years | |||
| Managers (Year): Charles Jeremiah (2014), Larson Todd (2014), Skowronski Scott (2022), Aronson Owen (2025), Zhang Buo (2025), Kovarik Charles (2026) | |||
Portfolio Composition (as of 10/29/26)
| # of Holdings: | 742 |
| % in Top 10 Holdings: | 5.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 12.2% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 65.6% |
| Foreign Bond: | 12.2% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 22.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | First Trust |
| Phone Number: | 800-621-1675 |
| Website: | www.ftportfolios.com |
| Inception Date: | August 5, 2014 |
Expenses and Fees
| Expense Ratio (%): | 0.29% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.22% |
