The board of trustees of the First Trust Value Line Equity Allocation Index Fund has approved changes to the exchange-traded fund’s investment objective.
Subject to shareholder approval, the fund’s new investment objective will be to seek investment results that correspond generally to the price and yield of an equity index called the Nasdaq AlphaDEX Total US Market Index.
By constructing three sub-portfolios based on market capitalisation, the new index is designed to objectively identify and select stocks across market capitalisations that exhibit growth and value factors and appear to have the greatest potential for capital appreciation.
The new index is a modified equal-dollar weighted index comprised of US exchange-listed securities of companies with capital appreciation potential.
The fund’s current investment objective is to seek investment results that correspond generally to the price and yield (before fees and expenses) of the Value Line Equity Allocation Index. The fund will continue to seek investment results that correspond generally to the Value Line Index until shareholders approve the new investment objective.
Also subject to shareholder approval, the board has approved the reclassification of the fund’s investment objective from “fundamental” to “non-fundamental.” The fund’s investment objective is currently “fundamental”, meaning that changes to the investment objective can only be implemented upon shareholder approval. Changes to a non-fundamental investment objective can be implemented upon 60 days’ advance written notice to shareholders.
Shareholders of the fund will be asked to vote on proposals to approve the new investment objective and the reclassification of the fund’s investment objective at a special meeting of shareholders expected to be held later this year.
It is also anticipated that upon shareholder approval of the new investment objective, the fund will change its name to First Trust Total US Market AlphaDEX ETF, the fund will no longer list and trade its shares on the NYSE Arca under the ticker symbol “FVI” and the fund will instead list and trade its shares on The Nasdaq Stock Market under the ticker symbol “TUSA”.
The new index has been licensed for use by the fund. AlphaDEX is a trademark owned by First Trust Portfolios and has been licensed to Nasdaq for use in the name of the new index.