ETF Evaluator:
First Trust Low Duration Oppos ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Short Government Over the Last Year
| 16.0% | SoFi Enhanced Yield ETF (THTA) |
| 4.9% | First Trust Low Duration Oppos ETF (LMBS) |
| 3.9% | Xtrackers US 0-1 Year Treasury ETF (TRSY) |
| 3.8% | Franklin Short Duration US Govt ETF (FTSD) |
| 3.8% | Short Government () |
Risk
Index
Risk
Index
ETF Details
First Trust Low Duration Oppos ETF Overview
First Trust Low Duration Oppos ETF (LMBS) is an actively managed Taxable Bond Short Government exchange-traded fund (ETF). First Trust launched the ETF in 2014.
The investment seeks to generate current income with a secondary objective of capital appreciation.
Under normal market conditions, the fund will seek to achieve its investment objectives by investing at least 60% of its net assets (including investment borrowings) in mortgage-related debt securities and other mortgage-related instruments (collectively, "Mortgage-Related Investments"). The advisor normally expects to invest in Mortgage-Related Investments tied to residential and commercial mortgages.
About First Trust Low Duration Oppos ETF (LMBS)
There are 3 members of the management team with an average tenure of 8.69 years: Jeremiah Charles (2014), Owen Aronson (2023) and James Snyder (2014). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: ICE BofA 1-5Y US Trsy&Agcy TR USD index with a weighting of 100%. First Trust Low Duration Oppos ETF has 1245 securities in its portfolio. The top 10 holdings constitute 80.0% 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 Low Duration Oppos ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. First Trust Low Duration Oppos ETF has 0.1% 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 86.4% (86.3% domestic bond, 0.1% foreign bond and 0.0% convertible bond). First Trust Low Duration Oppos ETF has 13.6% of the portfolio in cash.
Assets Under Management
The fund has $6 billion in total assets, which is above the $3 billion average for the Short Government 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.
LMBS 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 Low Duration Oppos ETF expense ratio is above average compared to funds in the Short Government category. First Trust Low Duration Oppos ETF has an expense ratio of 0.66%, which is 351% 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 Low Duration Oppos ETF has a portfolio turnover rate of 268%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 190% for the Short Government category.
Recently, in the month of July 2026, First Trust Low Duration Oppos ETF returned -0.1%, which earned it a grade of D, as the Short Government category had an average return of 0.1%. 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 Low Duration Oppos ETF has a trailing yield of 4.13%, which is below the 4.28% category average.
The fund normally distributes its income monthly and its capital gains annually.
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 Low Duration Oppos ETF Grades
Year to date, the ETF has returned 1.4%, 0.2 percentage points better than the category, which translates into a grade of B. The fund has returned 4.9% over the past year (grade of A), 5.6% over the past three years (grade of A) and 3.0% per year over the past five years (grade of A) and 2.6% per year over the past 10 years (grade of A).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about First Trust Low Duration Oppos ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
LMBS Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| LMBS Return (NAV) | -0.1% | 0.2% | 4.9% | 5.6% | 3.0% | 2.6% |
| LMBS Return (Price) | -0.2% | 0.3% | 4.9% | 5.7% | 3.1% | 2.6% |
| NAV +/- Price Return | 0.161% | -0.060% | 0.028% | -0.093% | -0.025% | 0.017% |
| Short Government Avg | 0.1% | 0.4% | 3.8% | 4.4% | 2.0% | 1.9% |
| LMBS Grade (NAV) | D | D | A | A | A | A |
| +/- Category (NAV) | -0.2% | -0.1% | 1.1% | 1.2% | 1.1% | 0.7% |
| LMBS Tax-Cost Ratio | na | na | 1.7% | 1.7% | 1.4% | 1.2% |
LMBS Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| LMBS Return (NAV) | 1.4% | 7.1% | 5.1% | 5.9% | -3.2% | -0.8% | 1.8% | 4.2% | 1.5% | 1.8% | 6.8% |
| LMBS Return (Price) | 1.4% | 7.0% | 5.1% | 6.1% | -3.1% | -0.9% | 1.6% | 4.1% | 1.6% | 1.7% | 6.5% |
| NAV +/- Price Ret | -0.002% | -0.013% | 0.008% | 0.035% | -0.042% | 0.181% | -0.098% | -1.1% | 10.6% | -4.7% | -5.4% |
| Short Government Avg | 1.2% | 4.5% | 4.2% | 4.5% | -4.2% | -0.8% | 3.3% | 3.8% | 1.4% | 0.9% | 1.8% |
| LMBS Grade (NAV) | B | A | A | A | A | D | F | A | B | A | A |
| +/- Category | 0.2% | 2.6% | 0.9% | 1.4% | 1.0% | -0.0% | -1.5% | 0.3% | 0.1% | 0.9% | 5.1% |
| Risk Measures | |
| Beta: | 0.45 |
| R-Squared: | 92% |
| Standard Deviation: | 2.7% |
| Category Risk Index: | 1.59 |
| Category Risk Rating: | High |
| Total Risk Index: | 0.22 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.1% |
| Total Assets: | $ 6,355 Mil |
| Share Class Assets: | $ 6,355 Mil |
| Turnover: | 268.0% |
| Expense Ratio: | 0.66% |
| Index Fund: | No |
| Index Tracked: | ICE BofA 1-5Y US Trsy&Agcy TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 11.8 years | |||
| Average Tenure: 8.7 years | |||
| Managers (Year): Charles Jeremiah (2014), Snyder James (2014), Aronson Owen (2023) | |||
Portfolio Composition (as of 7/30/26)
| # of Holdings: | 1245 |
| % in Top 10 Holdings: | 80.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 86.3% |
| Foreign Bond: | 0.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 13.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | First Trust |
| Phone Number: | 800-621-1675 |
| Website: | www.ftportfolios.com |
| Inception Date: | November 4, 2014 |
Expenses and Fees
| Expense Ratio (%): | 0.66% (Rating: Above Avg) |
| Category Average Expense Ratio (%): | 0.15% |
