First Trust's YDIV Imminent

August 14, 2013

First Trust added an ER and ticker to its proposed ex-U.S. income ETF: Meet YDIV.


First Trust, the Wheaton, Ill.-based fund company known for niche strategies, filed an updated prospectus for an ex-U.S. diversified income ETF, providing a ticker and management fees, and naming its initial exchange—moves that often indicate a fund’s launch to be near term.

The International Multi-Asset Diversified Income Index Fund will don the ticker “YDIV,” tracking an index of non-U.S. securities including dividend-paying equities, REITs, preferred securities, infrastructure companies and an unnamed, non-U.S. fixed-income ETF.

The initial prospectus for YDIV was filed June 21, 2013.

The fixed-income ETF in which YDIV invests will take up 15 percent of the fund’s holdings and, according to the updated filing, will be an ETF that invests primarily in “junk” bonds.

In addition to a 15 percent allocation to a junk bond ETF, YDIV will carve out 25 percent of its portfolio for dividend-paying securities and divide up the remaining 60 percent equally between REITs, preferred securities and infrastructure companies, which will each claim 20 percent of YDIV’s holdings.

YDIV will track the Nasdaq International Multi-Asset Diversified Income Index and cost investors $79 per $10,000 invested, for a total expense ratio of 79 basis points. The fund will be initially listed on Nasdaq.



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