Description

The First Trust Senior Loan ETF (CAD-Hedged) is structured with the primary goal of delivering a significant and consistent level of income to its investors, while also pursuing capital appreciation as a secondary aim. This exchange-traded fund primarily allocates its assets to a diverse collection of senior floating-rate loans and other debt instruments. It achieves this exposure by investing in shares of the First Trust Senior Loan Fund, which is a U.S.-listed ETF. The debt securities held by the fund generally possess credit ratings of BB+ or lower from Standard & Poor's, or Ba1 or less from Moody's Investor Services, Inc., or an equivalent rating from another officially recognized rating organization. A crucial characteristic of this ETF is its strategy to largely offset its U.S. dollar currency risk by hedging it back to the Canadian dollar.