First Trust, the tenth-largest U.S. ETF issuer, has filed plans with the Securities and Exchange Commission to possibly introduce the First Trust High Yield Long/Short ETF. The primary objective of the fund is to provide income to investors with a secondary objective of capital growth. The filing did not include a ticker or expense ratio for the ETF.

First Trust said in the filing the ETF will be actively managed and take long and short positions in stocks. The ETF will track the the Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index and take short positions in those names the manager believes will lag that index.

The ETF will also be eligible to invest in high-yield debt and bank loans, according to the filing. Convertible bonds, mortgage-backed securities, preferred issues and corporate debt can also be included in the fund.

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This article was originally published on Benzinga, and is republished here with permission.

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