First Trust Announces Approval of Liquidation of First Trust Chindia ETF

Rhea-AI Summary

First Trust Advisors L.P. has announced the liquidation of the First Trust Chindia ETF (NYSE Arca: FNI). Following the recommendation from FTA, the Board of Trustees approved liquidation as being in the best interests of the Fund. Shareholders can sell their holdings until January 13, 2023, which is also the last day for creation and redemption orders. Liquidation is expected around January 20, 2023, with shareholders receiving cash redemption based on the net asset value after all expenses. FTA manages approximately $199 billion in assets.

Positive

• Shareholders receive cash redemption based on net asset value.

Negative

• Fund liquidation may indicate poor performance or lack of investor interest.
• Last day for transactions is January 13, 2023, limiting trading opportunities.

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Advisors L.P. (“FTA”) announced today approval of the liquidation of First Trust Chindia ETF (NYSE Arca: FNI), a series of First Trust Exchange-Traded Fund (the “Fund”).

Based upon the recommendation of FTA, the investment advisor of the Fund, the Board of Trustees of First Trust Exchange-Traded Fund determined that it was in the best interests of the Fund to liquidate the Fund. Accordingly, the Board of Trustees approved the liquidation of the Fund pursuant to a plan of liquidation and termination.

Shareholders may sell their holdings in the Fund prior to the end of the trading day on January 13, 2023. Customary brokerage charges may apply to these transactions. The last day the Fund will accept creation and redemption orders is January 13, 2023 and the Fund’s shares will subsequently be de-listed. The Fund will liquidate on or around January 20, 2023. Any person holding shares in the Fund as of January 18, 2023 will receive a cash redemption amount equal to the net asset value of such shares after the Fund has discharged and/or made reasonable provisions for the payment of all of its charges, taxes, expenses and liabilities. Shareholders generally will recognize a capital gain or loss on any redemption.

FTA is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA 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 has collective assets under management or supervision of approximately $199 billion as of November 30, 2022 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and SMAs. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

The Fund’s daily closing price and net asset value per share as well as other information can be found at www.ftportfolios.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221213006091/en/

First Trust Advisors L.P.

Press Inquiries: Ryan Issakainen 630-765-8689

Analyst Inquiries: Stan Ueland 630-517-7633

Source: First Trust Advisors L.P.

FAQ

What is the date of the First Trust Chindia ETF liquidation?

The First Trust Chindia ETF will liquidate around January 20, 2023.

What should shareholders do before the liquidation of FNI?

Shareholders should sell their holdings by the end of the trading day on January 13, 2023.

What happens to FNI shares after liquidation?

FNI shares will be de-listed after liquidation.

How are shareholders compensated after FNI's liquidation?

Shareholders will receive a cash redemption amount based on the net asset value of their shares.