First Trust Announces Shareholder Approval of New Investment Strategy for First Trust Strategic Income ETF
First Trust Advisors L.P. announced that shareholders of the First Trust Strategic Income ETF (Nasdaq: FDIV) approved changes to the Fund's principal investment strategies. The Fund will transition to a fund-of-funds strategy, leveraging the High Income Model, aimed at providing diversified income through fixed-income ETFs. The name will change to First Trust High Income Strategic Focus ETF, with a new ticker symbol 'HISF', effective February 28, 2022. Management fees will decrease from 0.85% to 0.20% of average daily net assets, while total fees will be capped at 0.87%.
- Transition to a fund-of-funds strategy to enhance income potential.
- Reduction in management fee from 0.85% to 0.20% of average daily net assets.
- None.
FTA previously announced that it was seeking shareholder approval for certain changes to the Fund’s principal investment strategies. The changes will convert the Fund from its current investment strategy to a fund-of-funds strategy that follows FTA’s First Trust High Income Model (“High Income Model”). More specifically, the Fund, through its investments in the ETFs selected through FTA’s dynamic allocation process to comprise the High Income Model, will seek to provide investors with a diversified income stream by holding a blend of fixed-income ETF assets that, through this allocation process, is actively managed to seek levels of high income and total return. The changes will be effective in the Fund’s portfolio on or around
FTA is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate
You should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. You can download a prospectus or contact FTA to request a prospectus, which contains other information about the Fund. Read it carefully before you invest. The risks of investing in the Fund are spelled out in its prospectus, shareholder reports and other regulatory filings.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information,
This press release does not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220223006279/en/
Press Inquiries:
Analyst Inquiries:
Source:
FAQ
What changes have been approved for the First Trust Strategic Income ETF (FDIV)?
When will the changes to the First Trust Strategic Income ETF take effect?
What is the new management fee for the First Trust Strategic Income ETF?
What factors will the First Trust Strategic Income ETF's investment strategy focus on?