On December 2, 2025, IFP Advisors, Inc disclosed a sale of 395,379 shares of First Trust Enhanced Short Maturity ETF (FTSM +0.02%), reducing its position by an estimated $23.66 million, according to a recent SEC filing.
- Sold 395,379 shares, with an estimated $23.66 million net position decrease
- Represents a trade of approximately 0.6116% of fund AUM
- Post-trade stake: 361,611 shares valued at $21.66 million
- Position now 0.56% of fund AUM, which places it outside the fund's top five holdings
What happened
According to a Securities and Exchange Commission (SEC) filing dated December 2, 2025, IFP Advisors, Inc reduced its holdings in First Trust Enhanced Short Maturity ETF (FTSM +0.02%) by 395,379 shares during the third quarter. The post-sale position stands at 361,611 shares, worth $21.66 million at quarter-end. The transaction reflects normal trading activity, with the stake now accounting for approximately 0.56% of the fund's reported U.S. equity assets.
What else to know
- The fund sold FTSM, reducing its stake to 0.56% of 13F reportable assets under management.
- Top holdings after the filing:
- NASDAQ:AAPL: $104.18 million (2.7% of AUM)
- NASDAQ:NVDA: $69.81 million (1.8% of AUM)
- NYSEMKT:VUG: $60.89 million (1.6% of AUM)
- NYSEMKT:SPY: $59.17 million (1.5% of AUM)
- NASDAQ:QQQ: $55.90 million (1.4% of AUM)
- As of December 1, 2025, shares of FTSM were priced at $59.90, down 0.4% from the 52-week high.
- One-year total return was 4.2%, underperforming the S&P 500 by 9.25 percentage points.
- Reported annualized dividend yield was 4.34% as of December 2, 2025.
ETF overview
| Metric | Value |
|---|---|
| AUM | N/A |
| Price (as of market close December 1, 2025) | $59.90 |
| Dividend yield | 4.34% |
| 1-year total return | 4.25% |
ETF snapshot
- Investment strategy focuses on maintaining a portfolio of U.S. dollar-denominated fixed- and variable-rate debt securities with an average duration of less than one year and average maturity below three years.
- Fund structure is an ETF that invests in U.S. dollar-denominated fixed- and variable-rate debt securities with an average duration of less than one year and average maturity below three years.
- Targets institutional and individual investors seeking competitive income and low volatility in changing rate environments.
First Trust Enhanced Short Maturity ETF (FTSM) is a short-duration fixed income ETF with a market capitalization of $6.16 billion, designed to offer enhanced yield while minimizing interest rate risk. The fund's active management approach allows for dynamic allocation among high-quality, short-term debt instruments, supporting both liquidity and capital preservation.
Foolish take
The First Trust Enhanced Short Maturity ETF (FTSM) isn't the highest-yielding bond ETF. With a focus on short-term debt, though, it provides a steady yield. Investors who held it over the past year haven't seen much price appreciation. Adding up all the dividends they received produced a 4.58% total return over the past 12 months.
At the end of June, FTSM was the seventh largest holding out of thousands in IFP Advisors' portfolio. A decision to trim about 52% of the FTSM shares it was holding suggests the firm expects the overall market to continue performing. In addition to trimming a defensive FTSM position from its portfolio, the firm raised its position in the Vanguard Growth ETF by 12% during the third quarter. The growth-focused ETF is now IFP's third-largest position.
Despite being focused on short-term debt, U.S. Treasury notes due in 2027 are the largest holding at 1.2% of the portfolio. Fixed-rate corporate bonds make up 46.7% of the overall portfolio.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
AUM (Assets Under Management): The total market value of assets that an investment manager or fund controls on behalf of investors.
13F reportable assets: Securities holdings that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC) on Form 13F.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Duration: A measure of a bond or portfolio's sensitivity to interest rate changes, expressed in years.
Maturity: The length of time until a debt security, like a bond, repays its principal amount.
Short-duration: Refers to bonds or funds with low average durations, making them less sensitive to interest rate changes.
Fixed- and variable-rate debt securities: Bonds or loans that pay either a set (fixed) or changing (variable) interest rate.
Active management: An investment strategy where managers make ongoing decisions to buy or sell assets, aiming to outperform benchmarks.
Capital preservation: An investment goal focused on preventing losses and maintaining the original investment amount.
Liquidity: How quickly and easily an asset can be converted into cash without significantly affecting its price.
