This is an actively managed ETF that diversifies across the broad US investment-grade bond market. It holds a mix of Treasuries, investment-grade corporate bonds and mortgage-backed securities, seeking a stable stream of interest income.

It is well suited to medium- to long-term investors who want steady bond interest income and prefer risk management through active management.

Launched by First Trust in 2018, it is an ETF that uses an active (actively managed) approach.

Under normal market conditions, the fund's principle is to allocate the entire investment portfolio to investment-grade securities. By managing a wide range of investment-grade bonds at its discretion, from Treasuries to corporate bonds and mortgage-backed securities, it responds flexibly to changes in market conditions.

• Blended management across the full investment-grade bond spectrum (Treasuries, corporate bonds, mortgage-backed securities)
• Active management allows a flexible response to changes in the interest rate environment

Assets under management (AUM) stand at $2.8B, and the expense ratio is 0.56% per year.

The cost burden is somewhat higher than that of similar-category ETFs shown in the table, such as BNDX and IUSB, but its differentiators are bond selection and duration adjustment through active management.

In an environment of high US interest rate volatility, investment-grade bond ETFs have seen their prices rise and fall with the direction of rates. Given the nature of active management, the fund may also adopt a strategy of adjusting duration to partially cushion losses during periods of rising rates.

When rate uncertainty is high, safe-haven sentiment tends to draw inflows into the investment-grade bond category as a whole, while in periods of rate stabilization, inflows continue from investors seeking relatively high interest income.

A diversified investment-grade bond portfolio and active management are its strengths, but its expense level is higher than that of comparable passive ETFs.

IUSB, shown in the table, passively tracks BlackRock's broad investment-grade bond index and is notable for its low expense ratio. BNDX invests in developed-market bonds outside the US, offering geographic diversification, while BINC is BlackRock's flexible income-strategy bond ETF. In addition, AGG and BND, which implement a similar core investment-grade bond strategy passively, can also be alternatives for cost-focused investors, and those who want short-term investment-grade bonds can also consider VCSH.

Here are some useful points to check before investing in FTCB. As an actively managed bond ETF, it is worth examining its expense level, interest rate sensitivity and the consistency of its management strategy together.

In a rising-rate environment, losses may occur from falling bond prices. Even with active management, the direction of market interest rates has a large effect on portfolio performance, so the rate outlook should be taken into account.

It suits investors who want to diversify across the broad investment-grade bond market while benefiting from the flexibility of active management. If cost is the priority, it is reasonable to also consider passive alternatives such as AGG and BND.