About First Trust Long Duration Opportunities ETF (LGOV)

The First Trust Long Duration Opportunities ETF (LGOV) is an exchange-traded fund that aims to provide investors with exposure to a diversified portfolio of long-duration fixed-income securities. The fund seeks to achieve its investment objective by investing at least 80% of its net assets in fixed-income securities with maturities of ten years or more. These securities may include corporate bonds, government bonds, mortgage-backed securities, and other types of debt instruments. The fund may also invest in derivatives such as interest rate swaps, options, and futures contracts to enhance its returns or hedge against market risks.

LGOV's investment strategy focuses on capturing the potential benefits of longer-duration bonds, which tend to offer higher yields compared to shorter-duration bonds. However, longer-duration bonds also carry greater interest rate risk, as their prices are more sensitive to changes in interest rates. The fund's portfolio managers employ active management techniques to identify securities that they believe will provide attractive risk-adjusted returns over the long term. They assess various factors such as credit quality, yield curve positioning, sector allocation, and macroeconomic trends to make informed investment decisions.