Friedenthal Financial Buys $4.5 Million of First Trust Low Duration Opportunities ETF
Key Points
Purchased 89,706 shares of LMBS; estimated trade value $4.5 million (based on quarterly average price).
Quarter-end position value increased by approximately $4.50 million, reflecting both share additions and price movement.
Transaction represented an approximately 2.3% increase of fund’s 13F assets under management (AUM).
Post-trade stake: 165,186 shares, valued at approximately $8.26 million.
Position now accounts for approximately 4.2% of Friedenthal Financial’s reportable AUM.
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Friedenthal Financial disclosed a buy of 89,706 shares of First Trust Low Duration Opportunities ETF (NASDAQ:LMBS) in its Jan. 27, 2026, SEC filing, with an estimated transaction value of $4.48 million based on quarterly average pricing.
What happened
According to a Jan. 27, 2026, SEC filing, Friedenthal Financial bought 89,706 shares of First Trust Low Duration Opportunities ETF, an estimated $4.48 million trade based on the average share price during the quarter. As a result, the stake’s value at quarter-end rose by approximately $4.50 million, inclusive of both the new shares and market price changes.
What else to know
- The buy increased the LMBS holding to 4.25% of Friedenthal Financial’s 13F AUM.
- Top holdings after the filing:
- NYSEMKT: ITOT: $22.1 million (11.4% of AUM)
- NYSEMKT: LMBS: $8.2 million (4.2% of AUM)
- NYSEMKT: SCHA: $6.9 million (3.6% of AUM)
- NYSEMKT: IJH: $6.2 million (3.2% of AUM)
- NYSEMKT: STIP: $5.6 million (2.9% of AUM)
- As of Jan. 26, 2026, shares were priced at $50.09, up 7.4% over the past year, underperforming the S&P 500 by 10.2 percentage points.
- Annualized dividend yield was 4.07% as of Jan. 27, 2026; shares were 3.6% below the 52-week high.
ETF overview
| Metric | Value |
|---|---|
| AUM | N/A |
| Price (as of market close 1/26/26) | $50.09 |
| Dividend yield | 4.07% |
| 1-year total return | 7.42% |
ETF snapshot
- The investment strategy focuses on generating income and preserving capital by allocating at least 60% of assets to mortgage-related debt securities, including both residential and commercial mortgage-backed securities.
- Portfolio composition is primarily mortgage-related investments, with active management seeking to optimize duration and credit exposure within the fund's mandate.
- Structured as an exchange-traded fund, the vehicle offers daily liquidity and a competitive expense profile for investors seeking low-duration fixed income exposure.
First Trust Low Duration Opportunities ETF (LMBS) is a large, actively managed ETF with a market capitalization of $5.73 billion. The fund seeks to deliver current income and capital preservation by investing predominantly in mortgage-related securities, balancing risk through active portfolio management. Its strategy targets investors seeking a stable income stream and reduced interest rate sensitivity compared to longer-duration bond funds.
What this transaction means for investors
Friedenthal Financial disclosed 251 positions in its latest 13F filing, down from 266 positions in the prior quarter. It made some adjustments among its largest holdings, more than doubling its LMBS position while reducing stakes in other top holdings such as ITOT, SCHA, and IJH.
LMBS offers exposure to a portfolio of mortgage-backed bonds. The fund’s current weighted average net duration for its bond holdings is about 2.5 years, which is relatively short. Adding to this bond fund while reducing positions in the stock-focused funds like ITOT, SCHA, and IJH shows an apparent rotation from risk to more certain near-term returns from bonds.
The potential for falling interest rates in 2026, after three years of elevated rates, may make short-term bonds more attractive right now. This is because, as interest rates fall, bond prices rise. Although LMBS seeks to limit interest rate sensitivity, sudden rate movements can affect its returns. For example, the initial spike in interest rates in 2022 caused the value of LMBS to decline, but the fund has delivered solid returns as rates have stabilized over the past two years.
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John Ballard 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.
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