FT Portfolios Canada Co. Announces Proposals to Change the Investment Objectives of Certain Funds
December 18 2020 - 4:41PM
FT Portfolios Canada Co. (the “
Manager”), the
manager of First Trust AlphaDEX™ U.S. Utilities Sector Index
ETF, First Trust AlphaDEX™ U.S. Consumer Staples Sector Index
ETF, First Trust AlphaDEX™ U.S. Consumer Discretionary Sector
Index ETF, First Trust AlphaDEX™ U.S. Materials Sector Index
ETF, First Trust AlphaDEX™ U.S. Energy Sector Index ETF, First
Trust AlphaDEX™ U.S. Financial Sector Index ETF and First
Trust Dorsey Wright U.S. Sector Rotation Index ETF (CAD-Hedged)
(collectively, the “
Funds”) is pleased to announce
that the board of directors of the Manager has approved a proposal
to change the investment objectives of each of the Funds as set out
below (the “
Proposals”). In addition, in
connection with the change of the investment objectives, the
Manager proposes to change the name of each of the Funds as
follows:
Current Fund Name and Sector Exposure |
New Fund Name and Sector Exposure |
Proposed Investment Objective |
First Trust AlphaDEX™ U.S. Utilities Sector Index ETFSeeks to
replicate the performance of the StrataQuant® Utilities Index |
First Trust Cloud Computing ETFCloud Computing Sector |
The Fund will seek to replicate, to the extent possible, the
performance of an index of U.S. companies involved in the cloud
computing industry, initially the ISE CTA Cloud
Computing™ Index. |
First Trust AlphaDEX™ U.S. Consumer Staples Sector Index
ETFSeeks to replicate the performance of the StrataQuant® Consumer
Staples Index |
First Trust Dow Jones Internet ETFInternet Sector |
The Fund will seek to replicate, to the extent possible, the
performance of an index of U.S. companies involved in the internet
industry, initially the Dow Jones Internet Composite IndexSM. |
First Trust AlphaDEX™ U.S. Consumer Discretionary Sector Index
ETFSeeks to replicate the performance of StrataQuant® Consumer
Discretionary Index |
First Trust Nasdaq Cybersecurity ETFCybersecurity Sector |
The Fund will seek to replicate, to the extent possible, the
performance of an index of U.S. companies in the cybersecurity
industry, initially the Nasdaq CTA Cybersecurity IndexSM. |
First Trust AlphaDEX™ U.S. Materials Sector Index ETFSeeks to
replicate the performance of StrataQuant® Materials Index |
First Trust NYSE Arca Biotechnology ETFBiotechnology Sector |
The Fund will seek to replicate, to the extent possible, the
performance of U.S. companies in the biotechnology industry,
initially the NYSE Arca Biotechnology IndexSM. |
First Trust AlphaDEX™ U.S. Energy Sector Index ETFSeeks to
replicate the performance of StrataQuant® Energy Index |
First Trust Indxx NextG ETFWireless Networking Sector |
The Fund will seek to replicate, to the extent possible, the
performance of U.S. companies that have devoted or have committed
to devote, material resources to the research, development and
application of fifth generation and next generation digital
cellular technologies as they emerge, initially the Indxx 5G &
NextG Thematic IndexSM. |
First Trust AlphaDEX™ U.S. Financial Sector Index ETFSeeks to
replicate the performance of StrataQuant® Financials Index |
First Trust Nasdaq Clean Edge Green Energy ETFClean Energy
Sector |
The Fund will seek to replicate, to the extent possible, the
performance of an index of U.S. listed companies designed to track
the performance of clean energy companies engaged in manufacturing,
development, distribution and installation of emerging clean-energy
technologies including, but not limited to, solar photovoltaics,
biofuels and advanced batteries, initially the NASDAQ® Clean Edge®
Green Energy IndexSM. |
First Trust Dorsey Wright U.S. Sector Rotation Index ETF
(CAD-Hedged)Seeks to replicate the performance of Dorsey Wright®
U.S. Sector Focus Five Index |
First Trust Morningstar Dividend Leaders ETF (CAD-Hedged) |
The Fund will seek to replicate, to the extent possible, the
performance of U.S. companies that have shown dividend consistency
and dividend sustainability, initially the Morningstar® Dividend
Leaders IndexSM. |
If approved, unitholders of the Funds will,
following implementation of the Proposals, hold the following units
of the renamed Funds:
Current Fund Name |
Current class of units held |
Current Ticker Symbol |
New Fund Name |
New class of units held |
New Ticker Symbol |
First Trust AlphaDEX™ U.S. Utilities Sector Index ETF |
Units |
FHU |
First Trust Cloud Computing ETF |
Units |
SKYY |
First Trust AlphaDEX™ U.S. Consumer Staples Sector Index ETF |
Units |
FHC |
First Trust Dow Jones Internet ETF |
Units |
FDN |
Hedged Units |
FHC.F |
Hedged Units |
FDN.F |
First Trust AlphaDEX™ U.S. Consumer Discretionary Sector Index
ETF |
Units |
FHD |
First Trust Nasdaq Cybersecurity ETF |
Units |
CIBR |
First Trust AlphaDEX™ U.S. Materials Sector Index ETF |
Units |
FHM |
First Trust NYSE Arca Biotechnology ETF |
Units |
FBT |
First Trust AlphaDEX™ U.S. Energy Sector Index ETF |
Units |
FHE |
First Trust Indxx NextG ETF |
Units |
NXTG |
First Trust AlphaDEX™ U.S. Financial Sector Index ETF |
Units |
FHF |
First Trust Nasdaq Clean Edge Green Energy ETF |
Units |
QCLN |
First Trust Dorsey Wright U.S. Sector Rotation Index ETF
(CAD-Hedged) |
Units |
FSR |
First Trust Morningstar Dividend Leaders ETF (CAD-Hedged) |
Units |
FDL |
The changes to the investment objectives should
modernize the sector exposures and investment portfolios of the
Funds and produce a more attractive return profile for unitholders
moving forward, while maintaining concentrated equity exposure
through an exchange-traded fund structure.
If the Proposals are approved, the Funds will
provide exposure to the performance of the following new indices by
investing all or substantially all of the Fund’s assets in the
underlying U.S. funds as set forth in the following table, which
are also managed by the Fund’s current portfolio advisor:
Fund |
Index |
Index Provider |
Underlying Fund |
First Trust Cloud Computing ETF(formerly, First Trust AlphaDEX™
U.S. Utilities Sector Index ETF) |
ISE CTA Cloud Computing™ Index |
Nasdaq, Inc. |
First Trust Cloud Computing ETF |
First Trust Dow Jones Internet ETF(formerly, First Trust AlphaDEX™
U.S. Consumer Staples Sector Index ETF) |
Dow Jones Internet Composite IndexSM |
S&P Dow Jones Indices LLC |
First Trust Dow Jones Internet Index Fund |
First Trust Nasdaq Cybersecurity ETF(formerly, First Trust
AlphaDEX™ U.S. Consumer Discretionary Sector Index ETF) |
Nasdaq CTA Cybersecurity IndexSM |
Nasdaq, Inc. |
First Trust Nasdaq Cybersecurity ETF |
First Trust NYSE Arca Biotechnology ETF (formerly, First Trust
AlphaDEX™ U.S. Materials Sector Index ETF) |
NYSE Arca Biotechnology IndexSM |
ICE Data Indices, LLC |
First Trust NYSE Arca Index Fund |
First Trust Indxx NextG ETF (formerly, First Trust AlphaDEX™ U.S.
Energy Sector Index ETF) |
Indxx 5G & NextG Thematic IndexSM |
Indxx, LLC |
First Trust Indxx NextG ETF |
First Trust Nasdaq Clean Edge Green Energy ETF(formerly, First
Trust AlphaDEX™ U.S. Financial Sector Index ETF) |
NASDAQ® Clean Edge® Green Energy IndexSM |
Nasdaq, Inc. and Clean Edge, Inc. |
First Trust NASDAQ® Clean Edge® Green Energy Index Fund |
First Trust Morningstar Dividend Leaders ETF (CAD-Hedged)(formerly,
First Trust Dorsey Wright U.S. Sector Rotation Index ETF
(CAD-Hedged)) |
Morningstar® Dividend Leaders IndexSM |
Morningstar, Inc. |
First Trust Morningstar Dividend Leaders Index Fund |
As a result, the Funds’ management fees will change
from 0.70% per annum of net asset value to 0.15% per annum of net
asset value and going forward the Funds will also bear the
management fee of the underlying funds which range from 0.30% to
0.70% per annum of net asset value.
The Manager has called and will hold special
meetings of unitholders of the Funds on February 3, 2021 to
consider and vote upon the Proposals. A management information
circular (the “Circular”) describing the Proposals
is being prepared and will be mailed to the unitholders of the
Funds. The Circular will also be available on SEDAR at
www.sedar.com and posted on the Manager’s website at
www.firsttrust.ca. Implementation of the Proposals is subject to
all required regulatory approvals. If approved, the Proposals are
expected to be implemented in February of 2021.
About First Trust
FT Portfolios Canada Co. (“FT Portfolios
Canada”) is the trustee, manager and promoter of the
Funds. FT Portfolios Canada and its affiliates First Trust Advisors
L.P. (“FTA”), portfolio advisor to the Funds, an
Ontario Securities Commission registered portfolio manager and U.S.
Securities and Exchange Commission registered investment advisor,
and First Trust Portfolios L.P., 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 U.S. $164 billion as of November 30, 2020 through
unit investment trusts, exchange-traded funds, closed-end funds,
mutual funds and separate managed accounts.
Further information about FT Portfolios Canada’s
ETFs can be found at www.firsttrust.ca.
For further information: Media Contact: Karl
Cheong, FT Portfolios Canada Co., 40 King Street West, Suite 5102,
Email: karlcheong@firsttrust.ca, 1-877-622-5552.