It is an actively managed bond ETF that invests in intermediate maturity US investment grade corporate bonds, seeking interest income and long-term capital growth. The portfolio manager adjusts holdings and maturities in response to the interest rate and credit environment.

It suits income-oriented investors who want stable interest income from investment grade corporate bonds and expect differentiated results from active management.

It is an ETF run by First Trust using an active management approach.

The fund invests most of its assets in intermediate maturity US investment grade corporate bonds. It holds corporate bonds, notes and commercial paper, while the portfolio manager adjusts holdings and maturities according to the interest rate and credit environment, pursuing both interest income and long-term capital growth.

• Focus on intermediate investment grade corporate bonds
• Active adjustment of holdings and maturities by the manager

Assets under management (AUM) stand at $633.8M, and the total expense ratio is 0.49% per year.

Unlike passive corporate bond ETFs, the manager's security selection can produce results that differ from the market, and because of active management, its fees tend to be somewhat higher than those of passive corporate bond ETFs.

Corporate bond prices move with the direction of interest rates and the trend in credit spreads. When rates are cut or the economy is healthy, spreads tend to narrow and corporate bonds tend to show relative strength, but prices can wobble when rates rise or credit concerns grow.

Money tends to flow into investment grade corporate bond ETFs when demand for stable income is high, and flows can reverse when aversion to credit risk strengthens. Fund flows shift with the interest rate cycle.

Its strengths are the pursuit of stable interest income from investment grade corporate bonds and active differentiation, while interest rate sensitivity and the fee burden are its weaknesses.

VCIT, IGIB and SPIB shown in the table are passive ETFs that invest in the same intermediate investment grade corporate bonds at low fees, and their management approach is different. For broader exposure to investment grade corporate bonds, you can also compare the flagship corporate bond ETF LQD, the broad investment grade corporate bond ETF USIG, and the low-fee corporate bond ETF SPBO. They differ in maturity, management style and fees, so it is best to choose according to your investment profile.

These are the points to review before investing in FIIG. As an active corporate bond ETF, it is important to check interest rate sensitivity, credit composition, fee level and management style together in advance.

When interest rates rise, there is a risk of falling corporate bond prices, and during an economic slowdown, prices can wobble as credit spreads widen. The higher fees that come with active management can also eat into returns to some extent.

This ETF suits income-oriented investors who want stable interest income from investment grade corporate bonds and expect active differentiation. If you prioritize low-fee diversification, a passive corporate bond ETF may be the better choice, and if you want active management, FIIG can be an alternative.