FT Portfolios Canada (First Trust Canada) has launched the common and advisor class of units of the First Trust Senior Loan ETF (CAD-Hedged) in Canada.
The fund intends to provide unitholders with a high level of current income by investing primarily in a portfolio of senior floating rate loans and debt securities.
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Capital appreciation will be the secondary objective of the fund, which will invest in loans that are generally rated at or below BB+ by Standard & Poors, or Ba1 or less by Moody’s Investor Services, or a similar rating by an approved credit rating organization.
First Trust Canada president & CFO, Fraser Howell, said the company believes an allocation to senior loans may address two issues critical to investors in the current low interest rate environment which include the search for yield and the desire for protection against rising interest rates.
"The First Trust Senior Loan ETF (CAD-Hedged) is the latest example of our commitment to Canadian investors to developing ETFs that democratize access to asset classes and strategies normally only available to institutional investors," Howell said.
The active management structure will enable the fund’s portfolio advisor to secure both risk-adjusted and absolute returns over time.
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By GlobalDataThe company has appointed its affliate First Trust Advisors to manage the fund.
