At a glance
FSIG charges 0.44% a year, above the 0.09% average of the 7 funds most like it (the most expensive of 8). It has $1.51B in assets, the 7th largest of that group; it paid 5.13% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.1% with distributions reinvested, 5th of those 8 funds; over three years it returned +5.2% a year. At its worst it fell 6.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months after the low. Its ten largest positions make up 9.2% of the fund, out of 312 in all.
The short version
First Trust Limited Duration Investment Grade Corporate ETF (FSIG) is an actively managed fund. It buys mostly investment-grade corporate bonds with short maturities and pays income monthly. Instead of tracking an index, its managers choose each bond through their own credit research, and they may put up to 20% in lower-rated debt. That approach costs 0.44% a year, against 0.04% for iShares' IGSB and 0.03% for Vanguard's VCSH.
Price history
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FSIG +1.1% 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 | |
|---|---|---|---|---|---|---|
| FSIG official prospectus, to Dec 31, 2025 | — | +6.65% | — | — | — | +2.99% |
| FSIG price data to Oct 27, 2026 | +0.2% | +1.1% | +5.2% | — | — | +2.6% |
- Over the year to Oct 27, 2026, FSIG returned +1.1%, 5th of 8 among similar funds.
- Its worst full calendar year was 2022 (-4.2%); its best was 2025 (+6.9%).
- The deepest fall in its price history was 6.8% (Nov 19, 2021 to Oct 20, 2022), recovered by Dec 1, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.2% | — |
| 2025 | +6.9% | +6.65% |
| 2024 | +4.0% | +4.27% |
| 2023 | +6.3% | +6.10% |
| 2022 | -4.2% | -4.38% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6% over that stretch · deepest drop along the way 6.4%, back to its old high 14.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7000 | |
| 2025 | $0.9500 | +13.1% |
| 2024 | $0.8400 | -2.3% |
| 2023 | $0.8600 | +75.5% |
| 2022 | $0.4900 |
What's inside
As of Jul 31, 2026, the fund held 312 securities; the ten largest made up 9.24% of assets, and 2.05% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| MSCI INC Bonds and notes | 1.50% | |
| CROWDSTRIKE HOLDINGS INC Bonds and notes | 1.39% | |
| 1011778 B.C. ULC / NEW RED FINANCE INC Bonds and notes | 0.96% | |
| SMURFIT KAPPA TREASURY UNLTD CO Bonds and notes | 0.86% | |
| CONSTELLATION SOFTWARE INC Bonds and notes | 0.86% | |
| BERRY GLOBAL INC Bonds and notes | 0.77% | |
| STATE STREET CORP Bonds and notes | 0.74% | |
| IQVIA INC Bonds and notes | 0.74% | |
| AMERICAN BUILDERS & CONTRACTORS SUPPLY CO. INC Bonds and notes | 0.71% | |
| MEDLINE BORROWER LP Bonds and notes | 0.70% | |
| MORGAN STANLEY Bonds and notes | 0.70% | |
| JP MORGAN CHASE & COMPANY Bonds and notes | 0.69% | |
| UNITED RENTALS (NORTH AMERICA) INC Bonds and notes | 0.69% | |
| COSTAR GROUP INC Bonds and notes | 0.68% | |
| BANK OF AMERICA CORP Bonds and notes | 0.66% |
By country
United States 78.64%Canada 9.36%Ireland 2.52%United Kingdom 1.78%Netherlands 1.36%By issuer
Companies 96.33%US Treasury 0.97%The bonds mature in 3.8 years on average (weighted by size), with an average coupon of 4.76%.
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 added a net $20.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.33%, +0.17%, -0.25%.
How it works
FSIG does not track an index. First Trust's managers invest at least 80% of the fund in investment-grade corporate debt. That means bonds rated BBB- or Baa3 or higher by at least one rating agency. When agencies disagree, the fund uses the highest rating. The managers study each company's cash flows, valuation, industry and management. They favor businesses with steady cash flows through an economic cycle and management teams with a sound track record.
To limit interest-rate risk, the fund keeps its duration within one year of the Bloomberg U.S. Corporate 1-5 Year Index. Duration measures how much a bond's price reacts to rate changes. A three-year duration means a drop of about 3% if rates rise 1%. Up to 20% may go into bonds of any quality, including junk bonds, senior loans (mostly "covenant-lite" loans with fewer lender protections) and collateralized loan obligations (CLOs). More than 25% of assets will be in the financial sector.
As of July 31, 2026, the fund held 312 issues. The ten largest made up only 9.24% of assets, led by bonds from MSCI (1.5%) and CrowdStrike (1.4%). About 79% was in US issuers and 9% in Canadian ones. Portfolio turnover was 36%. The fund creates and redeems shares partly for cash, which may make it less tax-efficient than ETFs that swap securities instead.
What it really costs
- FSIG charges 0.44% a year, versus an average of 0.09% for the similar funds below (8th of 8, 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 stated objective is current income, which it pays monthly from a portfolio of short-dated corporate bonds.
FSIG could provide monthly income with fairly small price swings. Its trailing 12-month yield was 5.13% as of October 27, 2026, and its three-year volatility was 2.8%. The fund launched in November 2021, so it has no record through the 2008 or 2020 crashes. Its real test came in 2022, when rising rates cut its price by 6.4% between January 4 and September 27. It got back to its old high on November 29, 2023, about 14 months later. Its deepest drop was 6.8%, and 2022 was its worst calendar year, at -4.38%. A retiree who sold during that stretch would have locked in a modest loss. The 0.44% fee is far above the 0.09% average of similar funds, and it reduces the income investors keep. 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
- Income seekers wanting monthly payouts from short-dated corporate bonds, with a 5.13% trailing yield as of October 27, 2026.
- Investors who prefer managers picking bonds through credit research over an index approach, and who accept paying 0.44% a year for it.
- Retirees wanting a corporate bond holding that reacts less to rates; its deepest drop since its 2021 launch was 6.8%.
Look elsewhere if
- Cost-focused investors: IGSB charges 0.04% and VCSH 0.03% for short-term corporate bond portfolios with similar average maturities.
- Those wanting only investment-grade bonds, since up to 20% may go into junk bonds, senior loans or CLOs.
- Investors in taxable accounts who are sensitive to capital gains, because cash creations and redemptions may make it less tax-efficient.
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 |
|---|---|---|---|---|---|
| FSIG this fund | 3.8 yrs | 0.44% | $1.51B | +1.1% | +5.2% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| PFIG Invesco Fundamental Investment Grade Corpor… | 4.9 yrs | 0.22% | $123.9M | -0.2% | +5.7% |
| SLQD iShares 0-5 Year Investment Grade Corporate… | 2.6 yrs | 0.06% | $2.38B | +1.9% | +5.3% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
Questions investors ask
Does FSIG pay monthly dividends?
Yes. FSIG pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.95 per share, a trailing yield of 5.13%. Payments come from the interest on its bonds, which had an average coupon of 4.76% as of July 31, 2026. Payouts can rise or fall as the fund's bonds mature and are replaced at different interest rates.
What's the difference between FSIG and IGSB?
Both hold short-term investment-grade corporate bonds, with average maturities of 3.8 and 3.7 years. FSIG is actively managed, can hold up to 20% in lower-rated debt, and charges 0.44% a year. IGSB charges 0.04% and is far larger, with about $23.5 billion in assets against FSIG's $1.5 billion. Over three years, FSIG's price-based return averaged 5.2% a year as of October 27, 2026. IGSB's averaged 5.6% as of October 29.
Is FSIG safe in a stock market crash?
FSIG is much calmer than stocks, but it can still lose money. Its one-year beta was 0.08, so it barely moved with the stock market. Interest rates matter more. In 2022, rising rates pushed it down 6.4%, and it took about 14 months to recover. The fund launched in November 2021, so it was not around for the 2008 or 2020 crashes.
Why is FSIG's expense ratio higher than other short-term bond ETFs?
FSIG charges 0.44% a year, according to its February 27, 2026 prospectus. That pays for an active team that researches and picks individual bonds. It is the highest cost among eight comparable funds, where the average is 0.09%. VCSH charges 0.03% and IGSB 0.04%. On a bond fund yielding around 5%, that gap is a meaningful share of the yearly income.
Does FSIG hold junk bonds?
It can, but only a limited amount. At least 80% of the fund must be investment-grade corporate debt. The other 20% may go into bonds of any quality, including high-yield "junk" bonds, senior loans and CLOs. As of July 31, 2026, loans made up just 0.26% of assets. The largest holdings were bonds from MSCI, CrowdStrike and Smurfit Kappa.