First Trust Smith Opportnstc Fxd ETF Stock Price, News & Analysis

First Trust Smith Opportunistic Fixed Income ETF (FIXD) is an exchange-traded fund that is a series of First Trust Exchange-Traded Fund VIII. The fund is advised by First Trust Advisors L.P. (FTA), a federally registered investment advisor, and is sub-advised by Smith Capital Investors, LLC. According to fund disclosures, FIXD was formerly known as First Trust TCW Opportunistic Fixed Income ETF and operates under an investment advisory and sub-advisory structure designed for opportunistic fixed income management.

Under its current structure, FTA serves as the investment advisor to FIXD, while Smith Capital acts as the investment sub-advisor. Smith Capital is described as providing a disciplined, fundamentally driven approach to fixed-income investment management and advisory services. As sub-advisor, Smith Capital is responsible for the selection and ongoing monitoring of the securities in the fund’s investment portfolio, working within the framework established by the Trust and FTA.

Advisory and Sub-Advisory Structure

FIXD is part of a trust that utilizes a “manager of managers” structure. Under this structure, FTA and the Trust, subject to approval by the Board of Trustees, may enter into and materially amend investment sub-advisory agreements with affiliated and unaffiliated sub-advisors for the fund without obtaining shareholder approval each time. This arrangement allows the fund’s advisor and Board to adjust sub-advisory relationships while maintaining Board oversight.

The manager of managers structure also permits the fund, where applicable, to disclose certain information regarding investment advisory and sub-advisory fees on an aggregate basis in various disclosure documents, rather than on an individual sub-advisor basis. This framework is intended to govern how advisory relationships and related fee disclosures are handled for FIXD and other funds in the same trust.

Role of First Trust Advisors L.P.

First Trust Advisors L.P. serves as the investment advisor to FIXD and other funds in First Trust Exchange-Traded Fund VIII. FTA is a privately held, federally registered investment advisor that provides investment services through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is based in Wheaton, Illinois and works in coordination with its affiliate, First Trust Portfolios L.P. (FTP), which is a FINRA registered broker-dealer.

FTA supervises First Trust unit investment trusts, while FTP sponsors those trusts and also acts as a distributor of mutual fund shares and exchange-traded fund creation units. Within this broader platform, FIXD represents an exchange-traded fund focused on fixed income, advised by FTA and sub-advised by Smith Capital under the oversight of the Trust’s Board of Trustees.

Sub-Advisor: Smith Capital Investors, LLC

Smith Capital Investors, LLC is the investment sub-advisor to FIXD. It was founded in 2018 and provides fixed-income investment management and advisory services using a fundamentally driven approach. As sub-advisor, Smith Capital is responsible for, among other things, selecting and monitoring the securities that make up FIXD’s portfolio, in line with the fund’s mandate and the oversight of FTA and the Board of Trustees.

Smith Capital’s role under the sub-advisory agreement reflects the manager of managers structure adopted by the Trust. The Board of Trustees approved the termination of the fund’s previous sub-advisor and the appointment of Smith Capital, first under an interim agreement and then under a longer-term sub-advisory agreement that became effective upon shareholder approval.

Governance and Board Oversight

The Board of Trustees of First Trust Exchange-Traded Fund VIII oversees FIXD and other funds in the trust. At a Board meeting, the Board unanimously approved changes to the fund’s sub-advisory arrangements and recommended that shareholders approve the manager of managers structure. Shareholder approval was subsequently obtained for the new sub-advisory agreement and the manager of managers structure applicable to FIXD.

Under this governance framework, FTA and the Trust may, with Board approval, modify sub-advisory relationships without seeking separate shareholder votes for each change, while continuing to operate within regulatory requirements and disclosure practices described in the fund’s materials.

Relationship to First Trust Platform

FIXD is part of a broader family of investment products associated with First Trust Advisors L.P. and First Trust Portfolios L.P. FTA and FTP together support a range of investment vehicles, including exchange-traded funds such as FIXD, unit investment trusts, closed-end funds, mutual funds and separate managed accounts. Within this platform, FIXD is positioned as an opportunistic fixed income ETF that utilizes external fixed-income expertise through its sub-advisor, Smith Capital.

Information such as the fund’s daily closing price, net asset value per share and other fund-specific data is made available through First Trust’s information channels, as indicated in the fund’s public communications.

Disclaimers and Investor Responsibility

In its communications about FIXD and related funds, FTA states that the information presented is not intended to constitute an investment recommendation or advice to any specific person. FTA notes that, by providing such information, it is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are described as being responsible for independently evaluating investment risks and exercising their own judgment in determining whether investments are appropriate for their clients.

FAQs about First Trust Smith Opportunistic Fixed Income ETF (FIXD)

• What is First Trust Smith Opportunistic Fixed Income ETF (FIXD)?
  FIXD is an exchange-traded fund that is a series of First Trust Exchange-Traded Fund VIII. It is advised by First Trust Advisors L.P. and sub-advised by Smith Capital Investors, LLC, with a focus on opportunistic fixed income investing as described in fund communications.
• Who is the investment advisor for FIXD?
  The investment advisor for FIXD is First Trust Advisors L.P., a federally registered investment advisor that provides investment services across multiple product types, including exchange-traded funds.
• Who acts as the sub-advisor to FIXD?
  Smith Capital Investors, LLC serves as the investment sub-advisor to FIXD. It is responsible for selecting and monitoring the securities in the fund’s investment portfolio under the oversight of FTA and the Board of Trustees.
• What is meant by the “manager of managers” structure for FIXD?
  The manager of managers structure allows FTA and the Trust, with approval from the Board of Trustees, to enter into and materially amend investment sub-advisory agreements for FIXD with affiliated or unaffiliated sub-advisors without obtaining separate shareholder approval each time.
• How are advisory and sub-advisory fees disclosed for FIXD?
  Under the manager of managers structure, FIXD is permitted, where applicable, to disclose certain information regarding investment advisory and sub-advisory fees on an aggregate basis in various disclosure documents, rather than providing fee details for each sub-advisor individually.
• What role does the Board of Trustees play in overseeing FIXD?
  The Board of Trustees of First Trust Exchange-Traded Fund VIII oversees FIXD, including approving sub-advisory arrangements and the adoption of the manager of managers structure, and providing ongoing oversight of advisory relationships.
• What is First Trust Portfolios L.P. and how is it related to FIXD?
  First Trust Portfolios L.P. is an affiliate of First Trust Advisors L.P. and is a FINRA registered broker-dealer. It sponsors First Trust unit investment trusts and distributes mutual fund shares and exchange-traded fund creation units, which includes activity related to ETFs such as FIXD.
• Does information about FIXD constitute personalized investment advice?
  FTA states that information presented about FIXD and related funds is not intended as an investment recommendation or advice to any specific person and is not provided in a fiduciary capacity. Financial professionals are expected to independently evaluate investment risks and suitability.