The First Trust California Municipal High Income ETF (FCAL) primarily aims to generate an income stream that is exempt from both regular federal and California state income taxes. A secondary objective of the fund is to seek long-term growth in capital. Typically, the ETF pursues these goals by allocating a minimum of 80% of its total assets (including any borrowed funds) to municipal debt securities. The interest payments from these securities are specifically free from federal and California income taxation, and they are collectively known as "Municipal Securities.