WHEATON, Ill.–(BUSINESS WIRE)–
First Trust Advisors L.P. (“FTA”) announces the declaration of the
monthly distributions for certain exchange-traded funds advised by FTA.
The following dates apply to today’s distribution declarations:
|Expected Ex-Dividend Date:||May 22, 2018|
|Record Date:||May 23, 2018|
|Payable Date:||May 31, 2018|
|ACTIVELY MANAGED EXCHANGE-TRADED FUNDS|
|First Trust Exchange-Traded Fund III|
|FCAL||Nasdaq||First Trust California Municipal High Income ETF||Monthly||$0.1250|
|FEMB||Nasdaq||First Trust Emerging Markets Local Currency Bond ETF||Monthly||$0.1750|
|FMB||Nasdaq||First Trust Managed Municipal ETF||Monthly||$0.1125|
|FMHI||Nasdaq||First Trust Municipal High Income ETF||Monthly||$0.1400|
|FPE||NYSE Arca||First Trust Preferred Securities and Income ETF||Monthly||$0.0932|
|FPEI||NYSE Arca||First Trust Institutional Preferred Securities and Income ETF||Monthly||$0.0879|
|First Trust Exchange-Traded Fund IV|
|FCVT||Nasdaq||First Trust SSI Strategic Convertible Securities ETF||Monthly||$0.0450|
|FDIV||Nasdaq||First Trust Strategic Income ETF||Monthly||$0.2000|
|FTSL||Nasdaq||First Trust Senior Loan Fund||Monthly||$0.1600|
|FTSM||Nasdaq||First Trust Enhanced Short Maturity ETF||Monthly||$0.1025|
|HYLS||Nasdaq||First Trust Tactical High Yield ETF||Monthly||$0.2000|
|LMBS||Nasdaq||First Trust Low Duration Opportunities ETF||Monthly||$0.1175|
|First Trust Exchange-Traded Fund VI|
|FTHI||Nasdaq||First Trust BuyWrite Income ETF||Monthly||$0.0800|
|FTLB||Nasdaq||First Trust Hedged BuyWrite Income ETF||Monthly||$0.0550|
|First Trust Exchange-Traded Fund VIII|
|FIXD||Nasdaq||First Trust TCW Opportunistic Fixed Income ETF||Monthly||$0.1205|
|INDEX EXCHANGE-TRADED FUNDS|
|First Trust Exchange-Traded Fund VI|
|MDIV||Nasdaq||Multi-Asset Diversified Income Index Fund||Monthly||$0.1193|
|YDIV||Nasdaq||International Multi-Asset Diversified Income Index Fund||Monthly||$0.1150|
FTA, a federally registered investment advisor, and its affiliate First
Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are
privately held companies that provide a variety of investment services.
FTA is the investment advisor to exchange-traded funds, closed-end
funds, mutual funds, separate managed accounts and provides supervisory
services to FTP sponsored unit investment trusts. FTA’s assets under
management were approximately $122 billion as of April 30, 2018. This
includes the supervisory services FTA provides to FTP sponsored unit
investment trusts, which are unmanaged. FTP is a sponsor of unit
investment trusts and distributor of mutual fund shares and
exchange-traded fund creation units. FTA and FTP are based in Wheaton,
Past performance is no assurance of future results. Investment return
and market value of an investment in a Fund will fluctuate. Shares, when
sold, may be worth more or less than their original cost.
Principal Risk Factors: A Fund’s shares will change in value, and you
could lose money by investing in a Fund. An investment in a Fund is not
a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency. There
can be no assurance that a Fund’s investment objectives will be
achieved. An investment in a Fund involves risks similar to those of
investing in any portfolio of equity securities traded on exchanges. The
risks of investing in each Fund are spelled out in its prospectus,
shareholder report, and other regulatory filings.
An Index ETF seeks investment results that correspond generally to the
price and yield of an index. You should anticipate that the value of an
Index Fund’s shares will decline, more or less, in correlation with any
decline in the value of the index. An Index Fund’s return may not match
the return of the index. Unlike a Fund, the indices do not actually hold
a portfolio of securities and therefore do not incur the expenses
incurred by a Fund.
Investors buying or selling Fund shares on the secondary market may
incur customary brokerage commissions. Investors who sell Fund shares
may receive less than the share’s net asset value. Shares may be sold
throughout the day on the exchange through any brokerage account.
However, unlike mutual funds, shares may only be redeemed directly from
the Fund by authorized participants, in very large creation/redemption
units. If the Fund’s authorized participants are unable to proceed with
creation/redemption orders and no other authorized participant is able
to step forward to create or redeem, Fund shares may trade at a discount
to the Fund’s net asset value and possibly face delisting.
One of the principal risks of investing in a Fund is market risk. Market
risk is the risk that a particular security owned by a Fund, Fund shares
or securities in general may fall in value.
An actively managed ETF is subject to management risk because it is an
actively managed portfolio. In managing such a Fund’s investment
portfolio, the portfolio managers, management teams, advisor or
sub-advisor, will apply investment techniques and risk analyses that may
not have the desired result.
A Fund that is concentrated in securities of companies in a certain
sector or industry involves additional risks, including limited
diversification. An investment in a Fund concentrated in a single
country or region may be subject to greater risks of adverse events and
may experience greater volatility than a Fund that is more broadly
Certain Funds may invest in small capitalization and mid-capitalization
companies. Such companies may experience greater price volatility than
larger, more established companies.
An investment in a Fund containing securities of non-U.S. issuers is
subject to additional risks, including currency fluctuations, political
risks, withholding, the lack of adequate financial information, and
exchange control restrictions impacting non-U.S. issuers. These risks
may be heightened for securities of companies located in, or with
significant operations in, emerging market countries. A Fund may invest
in depositary receipts which may be less liquid than the underlying
shares in their primary trading market.
Investments in sovereign bonds involve special risks because the
governmental authority that controls the repayment of the debt may be
unwilling or unable to repay the principal and/or interest when due. In
times of economic uncertainty, the prices of these securities may be
more volatile than those of corporate debt obligations or of other
government debt obligations.
Preferred Securities, high-yield securities, corporate bonds, government
bonds, municipal bonds and senior loans are subject to credit risk, call
risk, income risk, interest rate risk, and prepayment risk. Credit risk
is the risk that an issuer of a security will be unable or unwilling to
make dividend, interest and/or principal payments when due and that the
value of a security may decline as a result. Credit risk is heightened
for floating-rate loans and high-yield securities. Call risk is the risk
that if an issuer calls higher-yielding debt instruments held by a Fund,
performance could be adversely impacted. Income risk is the risk that
income from a Fund’s fixed-income investments could decline during
periods of falling interest rates. Interest rate risk is the risk that
the value of the fixed-income securities in a Fund will decline because
of rising market interest rates. Prepayment risk is the risk that during
periods of falling interest rates, an issuer may exercise its right to
pay principal on an obligation earlier than expected. This may result in
a decline in a Fund’s income.
Senior floating-rate loans are usually rated below investment grade but
may also be unrated. As a result, the risks associated with these loans
are similar to the risks of high-yield fixed income instruments.
High-yield securities, or “junk” bonds, are subject to greater market
fluctuations and risk of loss than securities with higher ratings, and
therefore, may be highly speculative. These securities are issued by
companies that may have limited operating history, narrowly focused
operations, and/or other impediments to the timely payment of periodic
interest and principal at maturity. The market for high yield securities
is smaller and less liquid than that for investment grade securities.
Income from municipal bonds held by a Fund could be declared taxable
because of, among other things, unfavorable changes in tax laws, adverse
interpretations by the Internal Revenue Service or state tax
authorities, or noncompliant conduct of a bond issuer.
Convertible securities have characteristics of both equity and debt
securities and, as a result, are exposed to certain additional risks.
The values of certain synthetic convertible securities will respond
differently to market fluctuations than a traditional convertible
security because such synthetic convertibles are composed of two or more
separate securities or instruments, each with its own market value. A
Fund is subject to the credit risk associated with the counterparty
creating the synthetic convertible instrument. Synthetic convertible
securities may also be subject to the risks associated with derivatives.
Exchange-traded notes (ETNs) are senior, unsecured, unsubordinated debt
securities whose returns are linked to the performance of a particular
market benchmark or strategy minus applicable fees. The value of an ETN
may be influenced by various factors.
Real estate investment trusts (REITs) and real estate operating
companies (REOCs) are subject to certain risks, including changes in the
real estate market, vacancy rates and competition, volatile interest
rates and economic recession.
Master limited partnerships (MLPs) are subject to certain risks,
including price and supply fluctuations caused by international
politics, energy conservation, taxes, price controls, and other
regulatory policies of various governments. In addition, there is the
risk that a MLP could be taxed as a corporation, resulting in decreased
returns from such MLP.
The use of futures, options, and other derivatives can lead to losses
because of adverse movements in the price or value of the underlying
asset, index or rate, which may be magnified by certain features of the
derivatives. These risks are heightened when a Fund’s portfolio managers
use derivatives to enhance a Fund’s return or as a substitute for a
position or security, rather than solely to hedge (or offset) the risk
of a position or security held by a Fund.
A Fund may effect a portion of creations and redemptions for cash,
rather than in-kind securities. As a result, an investment in a Fund may
be less tax-efficient than an investment in an exchange-traded fund that
effects its creations and redemptions for in-kind securities.
A Fund’s investment in repurchase agreements may be subject to market
and credit risk with respect to the collateral securing the repurchase
Alternative investments may employ complex strategies, have unique
investment and risk characteristics and may not be suitable for all
Certain Funds may invest in other investment companies, including
closed-end funds (CEFs), ETFs and affiliated ETFs, which involves
additional expenses that would not be present in a direct investment in
the underlying funds. In addition, a Fund’s investment performance and
risks may be related to the investment and performance of the underlying
A Fund may invest in U.S. government obligations. U.S.Treasury
obligations are backed by the “full faith and credit” of the U.S.
government. Securities issued or guaranteed by federal agencies and U.S.
government sponsored instrumentalities may or may not be backed by the
full faith and credit of the U.S. government.
Income from the First Trust Managed Municipal ETF (FMB), the First Trust
California Municipal High Income ETF (FCAL) and the First Trust
Municipal High Income ETF (FMHI) may be subject to the federal
alternative minimum income tax. FMB, FCAL and FMHI may invest in zero
coupon bonds which may be highly volatile as interest rates rise and
fall. FCAL invests principally in municipal debt securities from issuers
located in California. Such concentration exposes the Fund to political,
fiscal, and economic conditions affecting California municipal issuers
and may affect the value of the Fund’s investments.
Short selling creates special risks which could result in increased
volatility of returns. In times of unusual or adverse market, economic,
regulatory or political conditions, a Fund may not be able, fully or
partially, to implement its short selling strategy.
Certain Funds may invest in distressed securities and many distressed
securities are illiquid or trade in low volumes and thus may be more
difficult to value. Illiquid securities involve the risk that the
securities will not be able to be sold at the time desired by the Fund
or at prices approximately the value at which the Fund is carrying the
securities on its books.
Certain Funds are classified as “non-diversified” and may invest a
relatively high percentage of its assets in a limited number of issuers.
As a result, the Fund may be more susceptible to a single adverse
economic or regulatory occurrence affecting one or more of these
issuers, experience increased volatility and be highly concentrated in
Nasdaq®, NASDAQ U.S. Multi-Asset Diversified Income IndexSM,
and NASDAQ International Multi-Asset Diversified Income IndexSM
are registered trademarks and service marks of Nasdaq, Inc. (which with
its affiliates is referred to as the “Corporations”) and are licensed
for use by FTA. The Funds have not been passed on by the Corporations as
to its legality or suitability. The Funds are not issued, endorsed,
sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.
The information presented is not intended to constitute an investment
recommendation for, or advice to, any specific person. By providing this
information, First Trust is not undertaking to give advice in any
fiduciary capacity within the meaning of ERISA and the Internal Revenue
Code. First Trust has no knowledge of and has not been provided any
information regarding any investor. Financial advisors must determine
whether particular investments are appropriate for their clients. First
Trust believes the financial advisor is a fiduciary, is capable of
evaluating investment risks independently and is responsible for
exercising independent judgment with respect to its retirement plan
This article provided by NewsEdge.