First Trust Structured Credit Income Opportunities ETF (SCIO)

The First Trust Structured Credit Income Opportunities ETF (SCIO) is an actively managed fund from First Trust Advisors that seeks current income with a secondary objective of capital appreciation.

The fund invests primarily in structured credit securities, including collateralized loan obligations, asset-backed securities and residential and commercial mortgage-backed securities, across a range of tranches and credit qualities. Managers use credit and collateral analysis to select securities they believe offer attractive risk-adjusted income.

Structured credit securities are backed by pools of loans or receivables and are divided into tranches with different priorities for receiving cash flows, so careful analysis of the underlying collateral and deal structure is central to the strategy.