First Trust has changed the investment objective of the RBA Quality Income ETF (QINC).
On or around 5 September 2018, the fund will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq Dorsey Wright Momentum + Yield Index (the “New Index”) and normally will invest at least 90 per cent of its net assets (including investment borrowings) in securities comprising the New Index. The New Index will be developed, maintained and sponsored by the Nasdaq Stock Market (Nasdaq).
The company is also reducing the annual management fee payable by the Fund to First Trust Advisors (FTA), the Fund’s investment adviser, from 0.70 per cent of the Fund’s average daily net assets to 0.60 per cent of the Fund’s average daily net assets. FTA will manage the investment of the Fund’s assets and will be responsible for the Fund’s expenses, including the cost of transfer agency, custody, fund administration, licensing fees, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees related to a Rule 12b-1 plan, if any, acquired fund fees and expenses, and extraordinary expenses, which are paid by the Fund. The reduction in the management fee will have no effect on the services provided to the Fund by FTA and will be effective on or around 5 September 2018.
It is also anticipated that on or around 5 September 2018, the Fund will change its name to First Trust Dorsey Wright Momentum & Dividend ETF. The Fund will continue to list and trade its shares on the Nasdaq Stock Market LLC under the ticker symbol QINC until 5 September 2018, at which time the Fund will list and trade its shares under the ticker symbol “DDIV”. The fund will obtain a new CUSIP and other identifiers.