ETF Evaluator: First Trust Smith Unconstrained Pl BdETF () Follow This ETF

First Trust Smith Unconstrained Pl BdETF Overview

First Trust Smith Unconstrained Pl BdETF (UCON) is an actively managed Taxable Bond Nontraditional Bond exchange-traded fund (ETF). First Trust launched the ETF in 2018.

The investment seeks to maximize long-term total return. Under normal market conditions, the fund invests at least 80% of its net assets (including investment borrowings) in a portfolio of fixed income securities. Its average portfolio duration will vary from between 0 to 10 years. It may invest a significant portion of its assets in securitized investment products, including up to 50% of its net assets in each of asset-backed securities, residential mortgage-backed securities and commercial mortgage-backed securities.

About First Trust Smith Unconstrained Pl BdETF (UCON)

There are 2 members of the management team with an average tenure of 1.23 years: Eric Bernum (2025) and Gibson Smith (2025). 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 US 3M Trsy Bill TR USD index with a weighting of 100%. First Trust Smith Unconstrained Pl BdETF has 477 securities in its portfolio. The top 10 holdings constitute 16.1% 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 Smith Unconstrained Pl BdETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. First Trust Smith Unconstrained Pl BdETF has 5.7% 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 3.4% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 96.3% (90.6% domestic bond, 5.7% foreign bond and 0.0% convertible bond). First Trust Smith Unconstrained Pl BdETF has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $3 billion in total assets, which is above the $320 million average for the Nontraditional 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.

UCON 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 Smith Unconstrained Pl BdETF expense ratio is high compared to funds in the Nontraditional Bond category. First Trust Smith Unconstrained Pl BdETF has an expense ratio of 0.86%, which is 36% lower than its category average, making the fund expense ratio grade a D. 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 Smith Unconstrained Pl BdETF has a portfolio turnover rate of 305%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 190% for the Nontraditional Bond category.

Recently, in the month of July 2026, First Trust Smith Unconstrained Pl BdETF returned -0.9%, which earned it a grade of D, as the Nontraditional 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 Smith Unconstrained Pl BdETF has a trailing yield of 4.75%, which is below the 6.67% 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 Smith Unconstrained Pl BdETF Grades

Year to date, the ETF has returned 0.2%, 0.1 percentage points better than the category, which translates into a grade of D. The fund has returned 3.3% over the past year (grade of D), 5.2% over the past three years (grade of D) and 2.6% per year over the past five years (grade of D).

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