Key Points
What happened
According to a filing with the Securities and Exchange Commission (SEC) dated Feb. 5, 2026, Csenge Advisory Group increased its stake in First Trust Low Duration Opportunities ETF (NASDAQ:LMBS) by 53,047 shares during the fourth quarter. The estimated value of the trade was $2.65 million, calculated using the average closing price for the quarter. The quarter-end value of the LMBS position rose by $2.81 million, a figure that includes both the new shares and changes in the ETF’s price.
What else to know
- This was a purchase, bringing the post-trade LMBS position to 1.86% of Csenge’s 13F assets under management (AUM).
- Top holdings after the filing:
- State Street SPDR S&P 500 ETF Trust: $123.24 million (5.6% of AUM)
- First Trust Enhanced Short Maturity ETF: $112.19 million (5.1% of AUM)
- Invesco S&P 500 Equal Weight ETF: $111.11 million (5% of AUM)
- First Trust Morningstar Dividend Leaders Index Fund: $83.7 million (3.8% of AUM)
- Invesco QQQ Trust: $80.26 million (3.6% of AUM)
- As of Feb. 5, LMBS shares were priced at $50.17, up 7.1% over the prior year on a total return basis, underperforming the S&P 500 by 6.48 percentage points.
- The fund’s annualized dividend yield was 4.07% as of Feb. 6, 2026.
ETF overview
MetricValueNet assets$5.98 billionPrice (as of market close Feb. 5, 2026)$50.17Dividend yield4.07%1-year total return7.11%
ETF snapshot
- Investment strategy focuses on generating income and capital preservation by allocating at least 60% of assets to mortgage-related debt securities and instruments, including both residential and commercial mortgage-backed securities.
- Portfolio is primarily composed of mortgage-related investments, with allocations managed to maintain a low duration profile and reduce interest rate risk exposure.
- Structured as an exchange-traded fund with a transparent, rules-based approach; expense ratio and detailed fund structure are available in regulatory filings.
First Trust Low Duration Opportunities ETF (LMBS) is a sizable fixed income ETF with net assets of $5.98 billion, offering investors exposure to a diversified portfolio of mortgage-related securities. The fund seeks to balance income generation and risk management by maintaining a low duration profile, appealing to investors seeking stability and yield in a rising or uncertain interest rate environment. Its disciplined investment strategy and focus on mortgage-backed securities provide a competitive edge among low-duration fixed income ETFs.
What this transaction means for investors
The First Trust Low Duration Opportunities ETF is an actively managed exchange-traded fund that holds more than 1,000 mortgage-related securities. Its low duration model means it invests in mortgage securities with shorter maturity dates — its weighted average effective net duration is 2.49 years — which somewhat shields these securities from interest rate risk. The ETF has returned around 7% year over year on a total return basis as of Feb. 26, underperforming the S&P 500’s 18% gain over the same time period. But its 4% dividend yield trounces the 1.13% yield of the benchmark index. And dividends have a big impact on the ETF’s performance. Without dividends reinvested, LMBS’ price change year over year is just 2.7%.
While Csenge Advisory did increase its LMBS holding in the fourth quarter, the bump was modest, driving it from 1.82% of assets under management as of Q3 to 1.86% of AUM as of Q4. All five of Csenge’s top holdings are ETFs that focus on different pockets of the market, including two that track the S&P 500 benchmark index in different ways, as well the Invesco QQQ trust, which is a favorite among those seeking to track the performance of the tech-focused Nasdaq-100.
ETFs that focus on mortgage-related securities can be a good source of recurring income and capital preservation, and can round out a diverse portfolio when combined with other large ETFs.
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Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
