At a glance
FCVT charges 0.95% a year, above the 0.56% average of the 5 funds most like it (the most expensive of 6). It has $100.8M in assets, the 6th largest of that group; it paid 1.42% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.6% with distributions reinvested, 2nd of those 6 funds; over three years it returned +18.1% a year. At its worst it fell 29.9% in the 2020 crash (S&P 500: 33.7%) and 23.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 36 months after the lows. Its ten largest positions make up 24.8% of the fund, out of 124 in all.
The short version
First Trust SSI Strategic Convertible Securities ETF (FCVT) is an actively managed fund that holds convertible securities. These are bonds and preferred shares that can be turned into company stock. Its sub-advisor, SSI Investment Management, leans toward fast-growing, innovative companies. The 0.95% expense ratio is well above similar convertible funds such as iShares Convertible Bond ETF (0.20%) and SPDR Bloomberg Convertible Securities ETF (0.40%).
Price history
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FCVT +4.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FCVT official prospectus, to Dec 31, 2025 | — | +20.45% | — | +3.44% | +10.03% | +9.74% |
| FCVT price data to Oct 27, 2026 | +7.6% | +4.6% | +18.1% | +3.8% | +10.3% | +9.6% |
- Over the year to Oct 27, 2026, FCVT returned +4.6%, 2nd of 6 among similar funds.
- Its 5-year annualized return was +3.8% and its 10-year +10.3%.
- In the 2020 COVID crash it fell 29.9% and regained its old high 2.5 months after the low.
- Its worst full calendar year was 2022 (-20.8%); its best was 2020 (+51.0%).
- The deepest fall in its price history was 31.8% (Feb 12, 2021 to Oct 27, 2023), recovered by Sep 11, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.6% | — |
| 2025 | +19.9% | +20.45% |
| 2024 | +11.9% | +11.33% |
| 2023 | +7.1% | +6.83% |
| 2022 | -20.8% | -20.30% |
| 2021 | +4.1% | +3.71% |
| 2020 | +51.0% | +50.19% |
| 2019 | +22.3% | +22.45% |
| 2018 | -2.2% | -1.57% |
| 2017 | +12.7% | +13.62% |
| 2016 | +8.0% | +6.79% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 29.9% over that stretch · deepest drop along the way 29.9%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.9% over that stretch · deepest drop along the way 23.1%, back to its old high 36.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5000 | |
| 2025 | $0.9400 | +95.8% |
| 2024 | $0.4800 | -18.6% |
| 2023 | $0.5900 | -50.8% |
| 2022 | $1.2000 | -87.4% |
| 2021 | $9.5600 | +1038.1% |
| 2020 | $0.8400 | +58.5% |
| 2019 | $0.5300 | +1.9% |
| 2018 | $0.5200 | -17.5% |
| 2017 | $0.6300 | +28.6% |
| 2016 | $0.4900 |
What's inside
As of Jul 31, 2026, the fund held 124 securities; the ten largest made up 24.76% of assets.
| Holding | Weight | |
|---|---|---|
| NEBIUS GROUP NV Bonds and notes | 3.18% | |
| ALPHABET INC Preferred stock | 3.18% | |
| WESTERN DIGITAL CORP | 3.09% | |
| ALPHABET INC Preferred stock | 2.81% | |
| LUMENTUM HOLDINGS INC Bonds and notes | 2.55% | |
| MORGAN STANLEY FINANCE LLC Bonds and notes | 2.17% | |
| BOEING COMPANY (THE) Preferred stock | 2.15% | |
| LIVE NATION ENTERTAINMENT INC Bonds and notes | 2.10% | |
| NEXTERA ENERGY CAPITAL HOLDINGS INC Bonds and notes | 1.82% | |
| AKAMAI TECHNOLOGIES INC Bonds and notes | 1.71% | |
| WELLS FARGO & COMPANY Preferred stock | 1.69% | |
| HEWLETT PACKARD ENTERPRISE COMPANY Preferred stock | 1.56% | |
| ON SEMICONDUCTOR CORP Bonds and notes | 1.52% | |
| SNOWFLAKE INC Bonds and notes | 1.46% | |
| WELLTOWER OP LLC Bonds and notes | 1.39% |
By country
United States 89.29%Netherlands 4.23%Bermuda 1.43%Australia 1.08%Israel 0.97%By issuer
Companies 99.15%The bonds mature in 4 years on average (weighted by size), with an average coupon of 1.48%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $15.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.35%, +1.08%, -8.35%.
How it works
FCVT does not track an index. SSI Investment Management LLC, First Trust's sub-advisor, picks the holdings. At least 80% of net assets go into US and non-US convertible securities. These are bonds or preferred shares that can be exchanged for a set amount of the issuer's stock, so they pay income but can also rise with the shares. The fund can also own several special types. Mandatory convertibles turn into stock automatically when they mature. Contingent convertibles (CoCos) are mostly issued by banks and can be converted or written down if the bank's capital falls below a set level. Synthetic convertibles are built from a bond plus an option or warrant. It can also own privately placed securities.
SSI first screens for the most reward per unit of risk. It then uses stock and credit analysis to find companies it sees as sound or improving. It tilts toward growth and innovation. It shifts sector, company-size, credit-quality, stock-market and interest-rate exposure with its economic outlook, and it may turn defensive when markets are under stress. Turnover was 122%, so holdings change often.
As of July 31, 2026, the fund held 124 positions: 75.7% bonds and notes, 18.4% preferred stock and 5.0% common stock. The average maturity was four years. The largest were a Nebius Group note (3.2%), Alphabet mandatory convertible preferred (3.2%) and Western Digital stock (3.1%). The fund creates and redeems shares partly for cash, which can make it less tax-efficient.
What it really costs
- FCVT charges 0.95% a year, versus an average of 0.56% for the similar funds below (6th of 6, cheapest first).
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its drops have looked more like a stock fund's than a bond fund's, so it fits better as a small add-on than as a core holding.
FCVT can add some stock-market upside with a bond-like structure, but in sell-offs it has behaved more like stocks. It fell 29.9% from February 19 to March 23, 2020, then recovered by June 8, 2020. In 2022 it dropped 23.1% by June 17 and did not regain its January 3 peak until June 26, 2025. Its deepest fall was 31.8%, from February 2021 to October 2023, and it took 22.5 months to recover from that low. Its worst calendar year was 2022, at -20.3%. The fund launched in 2015, so it has no 2008 record. Anyone who had to sell shares during those stretches would have locked in losses.
Income is modest: the trailing yield was 1.42% as of October 27, 2026, paid monthly, and the 0.95% expense ratio takes a large bite. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want stock-like growth with some bond features, through convertibles tilted toward innovators such as Nebius, Alphabet and Lumentum.
- People who prefer an active manager, SSI Investment Management, that shifts sector, credit and stock-market exposure instead of following an index.
- Holders who can ride out drops near 30%, as in 2020 and 2021–2023, for a record of 10.03% a year over 10 years to December 31, 2025.
Look elsewhere if
- Cost-conscious investors: the 0.95% expense ratio compares with 0.20% for ICVT and 0.40% for CWB, which hold similar convertibles.
- Retirees seeking meaningful income: the trailing yield was 1.42% as of October 27, 2026, though it is paid monthly.
- Anyone expecting bond-like calm: it lost 20.3% in 2022 and took until June 2025 to regain its early-2022 peak.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FCVT this fund | 4 yrs | 0.95% | $100.8M | +4.6% | +18.1% |
| CWB SPDR Bloomberg Convertible Securities ETF | 3.9 yrs | 0.4% | $6.20B | +4.8% | +16.2% |
| ICVT iShares Convertible Bond ETF | 3.9 yrs | 0.2% | $7.19B | +4.5% | +16.9% |
| VRP Invesco Variable Rate Preferred ETF | 32.5 yrs | 0.5% | $3.02B | +1.4% | +9.3% |
| FPE First Trust Preferred Securities & Income E… | 35.3 yrs | 0.85% | $6.32B | -2.0% | +9.5% |
| FPEI First Trust Institutional Preferred Securit… | 36.7 yrs | 0.85% | $1.93B | +0.5% | +10.0% |
Questions investors ask
Is FCVT good for retirement?
FCVT is a higher-risk add-on rather than a core retirement holding. It fell 29.9% in early 2020 and 23.1% in the first half of 2022, and it took until June 26, 2025 to regain its 2022 peak. Its trailing yield was only 1.42% as of October 27, 2026. Over the long run it returned 10.03% a year for the 10 years to December 31, 2025, but it got there with stock-like swings.
What's the difference between FCVT and CWB?
Both hold convertible securities with similar maturities, about four years on average. The main differences are cost, size and management. FCVT is actively managed by SSI and charges 0.95%, compared with 0.40% for SPDR Bloomberg Convertible Securities ETF (CWB). CWB had about $6.2 billion in net assets as of June 30, 2026, versus about $100.8 million for FCVT as of July 31, 2026. As of October 27, 2026, FCVT returned 18.1% a year over three years against CWB's 16.2%, and 4.6% over one year against CWB's 4.8%.
Does FCVT pay monthly dividends?
Yes, FCVT pays distributions monthly. Over the 12 months to October 27, 2026, it paid about $0.65 per share, a trailing yield of 1.42%. The payout is low because convertible bonds carry small coupons in exchange for the right to convert into stock. The average coupon in the portfolio was 1.48% as of July 31, 2026. Most of the fund's return has come from price changes rather than income.
What does FCVT hold?
FCVT holds about 124 convertible bonds, convertible preferred shares and some common stock. As of July 31, 2026, the largest positions were a Nebius Group 1.25% note due 2031 (3.2%), two series of Alphabet mandatory convertible preferred (3.2% and 2.8%), Western Digital stock (3.1%) and a Lumentum note (2.5%). Boeing and Live Nation were also in the top 10. The top 10 made up 24.8% of assets, and 89.3% was in US issuers.
How much did FCVT lose in 2022?
FCVT lost 20.3% in calendar 2022, its worst year since launching in 2015. Its worst quarter was the one ending June 30, 2022, at -16.68%. Convertibles took a double hit that year: the growth stocks behind them fell, and rising interest rates pushed down bond prices. From its peak on January 3, 2022, the fund did not fully recover until June 26, 2025, about 36 months later.