American Stock Exchange Lists First Trust Morningstar(R) Dividend Leaders Index Fund
March 15 2006 - 10:05AM
PR Newswire (US)
NEW YORK, March 15 /PRNewswire/ -- The American Stock Exchange(R)
(Amex(R)) announced today the launch of an exchange traded fund
(ETF) by First Trust Advisors L.P. (First Trust), based on the
Morningstar(R) Dividend Leaders Index (Index). The Fund seeks to
match the performance of the Morningstar Dividend Leaders Index and
will trade under the symbol FDL. This is First Trust's second ETF
listing on the Amex. The Index consists of the top 100 dividend
yielding stocks that are listed on U.S. securities exchanges
selected through the application of Morningstar's proprietary
multi-step screening process. The objective of the Index is to
offer investors a benchmark for dividend portfolios as well as a
means to invest in a portfolio of stocks that have a consistent
record of growing dividends as well as the ability to sustain them.
"We are very excited to welcome First Trust back to the Amex for
another innovative ETF listing," said Cliff Weber, Senior Vice
President of the ETF Marketplace at the Amex. "We also are pleased
to work with Morningstar for the first time. The Morningstar
Dividend Leaders Index and the First Trust Morningstar Dividend
Leaders Index Fund provide a new and different approach to
investing in dividend oriented securities." "We believe financial
advisors and their clients will find the First Trust Morningstar
Dividend Leaders Index Fund to be a convenient and attractive way
to participate in this segment of the market," said Scott Hall,
managing director at First Trust. "The underlying index is a
departure from the typical 'just deliver dividend' approach to many
current dividend funds. That is, Morningstar has developed a set of
screens looking not only for those stocks with high dividend yield,
but also dividend consistency and sustainability." Mr. Hall added:
"We're delighted to have such tremendous strategic partners in
Morningstar, Goldman Sachs, The Bank of New York, and the American
Stock Exchange in the launch of our second ETF." The Index is
unique because the stocks are weighted in proportion to the
dividends available to investors. Both the amount of the dividend
paid by a company and the size of the company are given due
importance. To be included in the Index, stocks must have a
consistent history of dividend payments. In addition, Morningstar
applies a sustainability screen that considers forward-looking
measures and favors companies that are expected to have sufficient
earnings to cover future dividends. About the American Stock
Exchange The American Stock Exchange(R) (Amex(R)) is the only
primary listing exchange that offers trading across a full range of
equities, options, exchange traded funds (ETFs), and structured
products, including HOLDRS(SM). The Amex pioneered the ETF, and is
responsible for bringing the first domestic product to market in
1993. Leading the industry in ETF listings, the Amex, to date,
lists 161 ETFs. The Amex also lists and trades options on
broad-based and sector indexes as well as domestic and foreign
stocks. About First Trust Advisors L.P. First Trust Advisors L.P.,
a registered investment adviser, is an Illinois limited partnership
formed in 1991. First Trust Portfolios L.P., the largest
independent unit investment trust sponsor in North America (by
sales), is an affiliate of First Trust Advisors. First Trust
Advisors serves as an investment adviser to separately managed
accounts, insurance companies, profit-sharing plans, and charitable
foundations and endowments. First Trust Advisors currently manages
or supervises approximately $20 billion in assets as of 6/30/05.
You should consider the Fund's investment objectives, risks,
charges and expenses carefully before investing. Call 800-621-1675
to request a prospectus, which contains this and other information
abut the Fund. Read it carefully before you invest or send money.
Like all investment company securities, the shares of the Fund are
not insured by the FDIC or any other government agency, are not
issued or guaranteed by any bank, and may lose value. DATASOURCE:
American Stock Exchange CONTACT: Kelsey Hubbard, American Stock
Exchange, +1-212-306-1440, Web site: http://www.amex.com/
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