First Trust has filed paperwork with the SEC for a “First Trust Inflation Managed Fund.” The Fund’s primary investment objective is to seek long-term capital appreciation and secondary investment objective is to seek current income.
PRINCIPAL INVESTMENT STRATEGIES
The Fund is an actively managed exchange-traded fund (“ETF”) that invests in common stocks of companies in the energy and materials sectors and in ETFs and closed-end funds (“CEFs”) that hold commodities, such as gold and silver, inflation-indexed government bonds and floating rate securities.
The fund may also use derivative investments to hedge against interest rate and market risks. The Fund may engage in various interest rate and currency hedging transactions, including buying or selling options or entering into other transactions including forward contracts, swaps and other derivatives transactions. The Fund may also engage in certain transactions intended to hedge its exposure to currency risks due to foreign currency denominated investments. [The Fund may sell covered calls on equity positions in the portfolio in order to enhance its income.]
For the complete filing click: HERE