First Trust Structured Credit Income Opportunities ETF (OTCMKTS:SCIO) is an actively managed exchange‐traded fund designed to provide investors with a diversified portfolio of structured credit and debt securities. The fund seeks to generate attractive current income while offering the potential for capital appreciation through exposure to a broad range of asset classes, including collateralized loan obligations (CLOs), residential mortgage‐backed securities (RMBS), commercial mortgage‐backed securities (CMBS) and various asset‐backed securities (ABS). By blending traditional and opportunistic credit positions, SCIO aims to balance yield generation with prudent risk management in changing market environments.
SCIO leverages the deep industry expertise of First Trust Advisors L.P., a subsidiary of First Trust Portfolios L.P., to source and analyze structured credit opportunities across both primary and secondary markets. Emphasizing rigorous credit research, the fund’s investment team evaluates underlying collateral performance, structural features and credit enhancement mechanisms to identify securities that offer compelling risk‐adjusted returns. The portfolio construction process is designed to adapt to evolving credit conditions and regulatory developments while maintaining a focus on liquidity and capital preservation.
First Trust Advisors L.P., founded in 1991 and headquartered in Wheaton, Illinois, manages a wide array of ETFs and mutual funds across equities, fixed income and alternative strategies. The team overseeing SCIO comprises seasoned credit analysts and portfolio managers with extensive experience in structured finance, rating agency criteria and securitization dynamics. Drawing on First Trust’s global network, the fund benefits from insights into both U.S. and select international structured credit markets, allowing for tactical adjustments to regional credit spreads and yield curves.
First Trust Structured Credit Income Opportunities ETF provides investors a convenient ETF wrapper to access the structured credit market’s income potential. SCIO is traded over the counter, offering daily liquidity and transparency into portfolio holdings. The fund’s governance framework adheres to First Trust’s commitment to robust risk controls, independent oversight and alignment of interests between investors and investment professionals.
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