First Trust Preferred Securities and Income ETF
First Trust Exchange-Traded Fund III · 1 share class
Fund classification
Classified from what the fund holds · as of 2026 Q2
First Trust Preferred Securities and Income ETF is an actively managed global bond ETF.
- Asset class
- Bonds
- Region
- Global
- Management
- Actively managed
- Fund type
- ETF
- Credit quality
- Investment grade
- Rate sensitivity
- Intermediate duration
Fund profile
As filed in the prospectus · 2026 Q1
The First Trust Preferred Securities and Income ETF s (the Fund ) investment objective is to seek total return and to provide current income.
The fund is managed by a sub-advisor that employs bottom-up and top-down analysis to select preferred securities and income-producing debt securities offering the best relative value, focusing on credit fundamentals, relative value, and technical factors including interest rate sensitivity, call features, and liquidity. The portfolio maintains at least 60% in investment-grade securities and up to 40% in high-yield securities, with at least 25% concentrated in the financial sector and an expected average duration of three to 12 years. Because security selection depends on the sub-advisor's relative-value judgments and credit analysis, portfolio performance will diverge from any benchmark based on those discretionary picks.
| Share class | Expense ratio |
|---|---|
| FPE | 0.83% |
Portfolio turnover 42.00% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 72.02% |
| Stocks | 26.71% |
| Cash & short-term | 0.01% |
Look-through blends 1 underlying fund; 0.0% of NAV was not looked through and stays direct-classified. The blend is as of 2025Q3, one or more quarters before the direct holdings (2026Q2).
Sector allocation
The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2
| Financials | 39.8% |
| International | 27.3% |
| Other | 12.9% |
| Utilities | 12.8% |
| 8 smaller | 7.2% |
Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).
Latest quarter
What changed since the fund's previous filing
Largest new: BNP PARIBAS SA, WELLS FARGO & COMPANY, EVERSOURCE ENERGY, CHARLES SCHWAB CORP (THE), JPMorgan Chase & Co., TELUS CORP, EMERA US FINANCE LLC, HSBC HOLDINGS PLC
Largest exited: BNP PARIBAS, COBANK ACB, AXIS SPECIALTY FINANCE, GOLDMAN SACHS GROUP INC, TELUS CORP, ROYAL BANK OF CANADA, TRANSCANADA TRUST, BANK OF AMERICA CORP
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 96.7% |
| Floating rate | 3.3% |
Share of the fund's debt value in each maturity band, shortest first.
| 1-3y | 0.5% |
| 5-10y | 0.5% |
| 10y+ | 37.5% |
| Unknown | 61.5% |
Based on what filers reported; a filer that never reported a flag also reads as none.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Credit spreads | 54% |
| Interest rates | 46% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| Investment grade | +5.21 yr |
| High yield | +0.85 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.02 yr | 0% |
| 1 yr | 0.59 yr | 11% |
| 5 yr | 1.78 yr | 34% |
| 10 yr | 1.82 yr | 35% |
| 30 yr | 1.04 yr | 20% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.44 yr | 7% |
| 5 yr | 2.56 yr | 42% |
| 10 yr | 2.79 yr | 46% |
| 30 yr | 0.27 yr | 4% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.02 | +0.00 | +0.00 | $4 | $247 |
| 1 yr | +0.59 | +0.32 | +0.12 | $206.4k | $73.9k |
| 5 yr | +1.78 | +2.13 | +0.43 | $1.35m | $275.1k |
| 10 yr | +1.82 | +2.49 | +0.29 | $1.59m | $187.1k |
| 30 yr | +1.04 | +0.26 | +0.01 | $166.8k | $4.1k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Reported price | Value | Shares |
|---|---|---|---|---|---|
| — | BANK OF AMERICA CORP6.63% | 2.52% | — | $160.64M | — |
| — | WELLS FARGO & COMPANY | 2.07% | $1,190.81 | $131.68M | 110.6K |
| — | BARCLAYS PLC8.00% | 1.65% | — | $105.25M | — |
| — | NEXTERA ENERGY CAPITAL HOLDINGS INC | 1.40% | $25.60 | $88.92M | 3.5M |
| — | JP MORGAN CHASE & COMPANY6.88% | 1.35% | — | $85.84M | — |
| — | XCEL ENERGY INC | 1.25% | $24.42 | $79.69M | 3.3M |
| — | CREDIT AGRICOLE SA7.13% | 1.23% | — | $78.17M | — |
| — | CITIGROUP INC6.63% | 1.20% | — | $76.45M | — |
| — | BNP PARIBAS SA7.20% | 1.13% | — | $72.16M | — |
| — | T-MOBILE USA INC | 1.09% | $22.20 | $69.29M | 3.1M |
Reported price is the fund's own reported value divided by its own reported shares at 2026-04-30 — not a live quote, and not what the fund paid.
Top 10 positions are 14.90% of net assets, top 25 29.72%, across 134 issuers.
See more of this fund's book
More positions with filed share counts, and the quarter-over-quarter change list rather than the largest few — free with an account, no card required.
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