First Trust Advisors L.P. (“FTA”) announced today that the reorganization of First Trust Value Line® 100 Exchange-Traded Fund (NYSE Arca: FVL), an index based exchange-traded fund (“ETF”), managed by FTA, into First Trust Value Line® Dividend Index Fund (NYSE Arca: FVD), an index based ETF managed by FTA, was completed prior to the open of the NYSE Arca on December 14, 2020.
As previously announced, the shareholders of FVL approved the FVL’s reorganization into FVD at a Special Meeting of Shareholders on November 16, 2020. The reorganization was approved by the Board of Trustees of FVL and FVD on January 30, 2020.
In the reorganization, the assets of FVL were transferred to, and the liabilities of FVL were assumed by, FVD. The shareholders of FVL received shares of FVD with a value equal to the aggregate net asset value of the shares of FVL held by them. The exchange of shares took place based upon FVL’s and FVD’s closing net asset values on December 11, 2020. The exchange ratio at which shares of FVL were exchanged for shares of FVD is 0.662214.
FVD is an index based ETF that seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Value Line® Dividend Index. FVD pursues this investment objective by investing at least 90% of its net assets in the common stocks and depositary receipts that comprise the index. The index seeks to measure the performance of certain ranked securities according to the Index Provider’s proprietary Value Line® SafetyTM Ranking System that are also still expected to provide above-average dividend yield.
FTA is a federally registered investment advisor and serves as the investment advisor of FVL and FVD. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), 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 $164 billion as of November 30, 2020 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of FVD. An investor should carefully consider the investment objectives, risks, charges and expenses of FVD before investing. The prospectus for FVD contains this and other important information and is available free of charge by calling First Trust Portfolios L.P. at 1-800-621-1675 or visiting www.ftportfolios.com. The prospectus should be read carefully before investing.