DEED vs SECR

DEEDCFirst Trust Securitized Plus ETF

SECRBNYLI MacKay Securitized Income ETF

In short

DEED Most securitized bond ETFs hug agency mortgages. DEED can put up to half its book in private-label MBS, ABS and CLOs, and First Trust has managed it in-house since 2025. Fee: 0.76%, no waiver.

SECR Most securitized bond ETFs stop at agency mortgages. SECR roams the whole structured-credit stack, CMBS, ABS, non-agency RMBS and CLOs, picked by MacKay Shields, at 0.28% net of a waiver through August 28, 2027.

Stated mandate

DEED The Fund seeks to maximize long-term total return by normally investing at least 80% of net assets in securitized debt securities, including asset-backed securities, residential and commercial mortgage-backed securities, and collateralized loan obligations.

SECR The Fund seeks total return with an emphasis on current income.

Why people hold it

• DEED The "Plus" is literal: an agency-mortgage core plus room for up to 50% of total assets in private-label MBS, ABS and CLOs, and up to 50% of net assets below investment grade.sec.gov
• At least 80% of net assets sit in securitized debt: ABS, residential and commercial MBS, CLOs. Roughly 90 positions, a corner of the bond market core aggregate funds barely touch.ftportfolios.com
• Active since 2020, run in-house by First Trust Advisors since the TCW sub-advisory ended in May 2025, on the same prospectus strategy. Pays monthly.sec.gov

• SECR At least 80% of assets sit in securitized paper: CMBS, ABS, agency and non-agency RMBS, CMOs and CLOs. Agency-mortgage peers like JMBS and JHMB work a narrower slice.sec.gov
• 0.28% net of a contractual waiver through August 28, 2027 (0.49% gross), below the category median and under FSEC's 0.36% and JHMB's 0.39% net of a waiver through July 31, 2027.
• Actively run by MacKay Shields rather than tracking an index, with income paid monthly and risk spread across roughly 400 positions.nylim.com
• Holdings line up with the securitized mandate the filings describe, one of the tidier implementations in this small peer group.

Worth knowing

• DEED At 0.76%, gross and net identical with no waiver, it sits above the category median; agency-focused JMBS runs 0.21% for a narrower job.
• Thinly traded with a modest asset base, so bid-ask spreads can run wider than a mainstream bond ETF's and large orders move the quote.
• Private-label MBS and CLO tranches add credit and valuation risk agency paper lacks; fund documents flag subordination and collateral shortfalls.ftportfolios.comsec.gov

• SECR Thinly traded, so spreads can run wider than the giant bond ETFs' and bigger orders may need patience.
• The 0.28% price tag leans on a waiver through August 28, 2027; the gross expense ratio behind it is 0.49%.
• Up to 20% of total assets can sit below investment grade, and non-agency structures carry credit and prepayment risk. The fund has only traded since 2024.sec.gov

Full DEED profile⁠

Full SECR profile⁠