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WHEATON, Ill. - First Trust Advisors L.P. (FTA) announced that shareholders of two fixed income ETFs have approved Smith Capital Investors, LLC as their new investment sub-advisor, replacing TCW Investment Management Company LLC. The First Trust Smith Unconstrained Bond ETF (UCON), with a market capitalization of $2.95 billion, has delivered a 5.13% return over the past year while maintaining an attractive 4.36% dividend yield, according to InvestingPro data.
The funds affected are First Trust Smith Opportunistic Fixed Income ETF (FIXD), formerly known as First Trust TCW Opportunistic Fixed Income ETF, and First Trust Smith Unconstrained Bond ETF (UCON), formerly known as First Trust TCW Unconstrained Plus Bond ETF. UCON has demonstrated stability in its performance, currently trading near its 52-week high of $25.34, with InvestingPro analysis revealing consistent dividend increases over the past three years and generally low price volatility. InvestingPro subscribers have access to 12 additional key insights about this ETF’s performance and outlook.
Shareholders also approved a Manager of Managers Structure, which allows FTA and the Trust to enter into and materially amend investment sub-advisory agreements with affiliated and unaffiliated sub-advisors without obtaining additional shareholder approval, subject to Board approval.
The Board of Trustees had previously approved the termination of TCW and appointment of Smith Capital at a meeting held on March 9-10, 2025. Smith Capital began providing investment services to the funds under an interim agreement effective May 9, 2025.
Smith Capital, founded in 2018 and based in Denver, Colorado, provides fixed-income investment management services with approximately $12 billion under management as of July 11, 2025. As sub-advisor, the firm will be responsible for security selection and portfolio monitoring for both funds.
First Trust Advisors, the funds’ investment advisor, manages approximately $268 billion in assets as of May 30, 2025 through various investment vehicles including exchange-traded funds and closed-end funds.
The announcement was made in a press release statement from First Trust Advisors.
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