Bringing you live news and features since 2006 

FT Portfolios to change investment objective of FUD ETF

RELATED TOPICS​

FT Portfolios Canada Co, the manager of First Trust AlphaDEX US Dividend ETF (CAD-Hedged) (FUD), is planning to change the ETF’s investment objective to seek to replicate the performance of the Value Line Dividend Index on a currency hedged basis, net of expenses and to change the management fee payable by the fund.  

In connection with the proposal, the fund’s will change to the First Trust Value Line Dividend Index (CAD-Hedged).
 
The fund’s manager believes the index change will create Improved downside protection, and produce a more consistent return profile for unitholders thereby reducing overall portfolio volatility moving forward.
 
The Value Line Dividend Index universe currently includes approximately 1,700 stocks. The Value Line Dividend Index tracks those that are Safety 1 or 2 rated, have a yield higher than the indicated yield of the S&P 500 and market capitalisation greater than USD1 billion as of the last rebalance. The Value Line Dividend Index includes 201 stocks as of 31 August, 2017.
 
The change in investment objective will not result in a disposition of units of FUD to unitholders for Canadian income tax purposes.
 
In addition, the manager believes that the change to the management fee payable by the fund is reasonable in that it is same as the management fee charged to First Trust Value Line Dividend Index Fund (a US ETF which tracks the same index), it reflects additional portfolio management work associated with monthly versus semi-annual rebalancing and that the Manager will pay a license fee to use the index and trademark which FUD currently does not pay.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by