First Trust Enhanced Short Maturity ETF

FTSM
ETF Ticker

+2.62%

+3.50%

NASDAQ

Fixed Income

United States

Money Market

ETF Strategy Fund Grade AAA

The First Trust Enhanced Short Maturity ETF, FTSM_US, is an actively managed strategy providing exposure to United States, Money Market Fixed Income. It is listed on the NASDAQ and has assets under management of $6,570.0m (as of Aug 31, 2026). The ETF trades in USD and was listed on the exchange on Aug 5, 2014. It has a net expense ratio of 45bps. (All data in USD as of Oct 15, 2026 unless stated.)

The investment strategy guiding the actively managed First Trust Enhanced Short Maturity ETF steers a diversified, USD-denominated short-duration bond portfolio aimed at current income with capital preservation and daily liquidity. The team allocates across U.S. government and agency securities, investment-grade corporates, asset- and mortgage-backed instruments and select securitized credit, targeting portfolio duration <1 year and average maturity <3 years while maintaining ≥investment-grade quality at purchase. Security selection combines top-down sector evaluation with bottom-up relative-value work emphasizing credit quality, yield, rate sensitivity and liquidity; positions are sized to sustain broad sector diversification and meet liquidity needs. The fund may hold AAA CLO tranches within stated limits and avoids bank loans under current guidelines. Ongoing monitoring drives trims and replacements when compensation for embedded risks weakens, when a higher-quality substitute offers better risk-adjusted carry, or to rebalance exposures and maintain diversification. All holdings are USD.

ETF Details

Key Facts

Issuer:
First Trust
AUM:
$6,570.0m (as of Aug 31, 2026)
Net Expense Ratio:
45 bps
Inception Date:
Aug 5, 2014
Index:
Actively managed strategy
Dividend Frequency:
Monthly

Trading

Ticker:
FTSM
Exchange:
NASDAQ
ISIN:
US33739Q4082
Trading Currency:
USD
Domicile:
United States

Classification & Risk

Asset Class:
Fixed Income
Asset Region:
United States
Theme:
Money Market
Economic Development:
Developed Markets
1 Year Volatility:
0.48%
3 Year Volatility:
0.50%
5 Year Volatility:
0.50%

Performance

TTM Dividend Yield:
4.06% (verify with issuer)
1 Month Performance:
0.29%
3 Month Performance:
0.75%
6 Month Performance:
1.66%
1 Year Performance:
3.50%
3 Year Performance:
14.59%
5 Year Performance:
19.87%
Investment Proposition

First Trust Enhanced Short Maturity ETF (FTSM) targets capital preservation and incremental income over cash by actively managing a diversified, investment-grade, short-duration portfolio spanning corporate and securitized credit alongside high-quality government exposures. The team applies credit research, liquidity management, and duration positioning to balance spread capture with limited interest-rate sensitivity, aiming for a steady risk profile through changing policy cycles. Return drivers are primarily carry and security selection, with modest duration effects; income tends to reset as market rates evolve, while credit conditions influence spread dynamics. Potential portfolio roles include cash management or sweep functionality, a “dry powder” reserve to fund tactical ideas without large price swings, and a stability sleeve within multi-asset income strategies. Suitable profiles include treasury or cash-segmented allocators seeking an actively managed step beyond T-bills and cautious investors prioritizing liquidity and low volatility over maximizing yield. Favorable regimes include orderly markets with rising or stable policy rates; credit stress or liquidity squeezes can challenge. A key risk to monitor is credit-market liquidity and turnover in spread sectors, which can affect execution and realized stability during dislocations.

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