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Shareholders approve merger of First Trust ETFs


Shareholders of First Trust Dividend and Income Fund (FAV), a closed-end fund managed by First Trust Advisors, have approved the fund’s merger with First Trust High Income ETF (FTHI), an actively-managed exchange-traded fund and series of First Trust Exchange-Traded Fund VI.

Shareholders of FTHI have also approved the issuance of FTHI shares in connection with the merger. The merger was approved by the board of trustees of FAV and the trust on 18 March 2016.
Upon the completion of the transaction, which is expected to be tax-free, the assets of FAV will be transferred to, and the liabilities of FAV will be assumed by, FTHI, and shareholders of FAV will receive shares of FTHI with a value equal to the aggregate net asset value of the FAV shares held by them.
The closing date of the merger is expected to occur as soon as reasonably practicable, but no later than 31 October, 2016.
FTHI is an actively-managed ETF that seeks to provide current income, with a secondary investment objective of capital appreciation. FTHI pursues these investment objectives by combining a stock portfolio with an index option strategy. FTHI invests primarily in US equity securities of all market capitalisations, favouring high dividend-paying common stocks. FTHI also uses an options strategy in which it writes (sells) US exchange-traded covered call options on the S&P 500 index seeking to generate additional cash flow in the form of premiums on the options that may be distributed to shareholders on a monthly basis.

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