American Stock Exchange Launches Trading in First Trust Value Line(R) 100 Exchange-Traded Fund
18 Juni 2007 - 6:52PM
PR Newswire (US)
Second Closed-End Fund to Convert Into Exchange Traded Fund Format
NEW YORK, June 18 /PRNewswire/ -- The American Stock Exchange(R)
(Amex(R)) today announced that it has launched trading in First
Trust Value Line(R) 100 Exchange-Traded Fund (FVLETF). First Trust
Advisors L.P. (First Trust) is the investment adviser to FVLETF.
FVLETF is the second exchange-traded fund (ETF) resulting from the
conversion of a closed-end fund, First Trust Value Line(R) 100 Fund
(FVLCEF). This move further demonstrates the increasing innovation
emerging around the exchange traded fund format. On May 17, 2007,
First Trust announced that FVLCEF shareholders approved the
reorganization of FVLCEF into an ETF. Under the terms of the
reorganization, the assets of FVLCEF were transferred to, and the
liabilities of FVLCEF were assumed by, FVLETF in exchange for
shares of FVLETF. On Friday, June 15, 2007, the reorganization was
effected and FVLCEF was delisted from the Amex at the market close.
FVLETF will trade on the Amex under the "FVL" ticker symbol. The
conversion represents a new strategy to reduce or eliminate the
discount to net asset value (NAV) at which shares of closed-end
funds can trade. As an ETF, FVLETF's share price is expected to
trade very closely to NAV. In the event the share price trades at a
significant deviation from NAV, arbitrageurs may effect trades that
serve to align the ETF's share price with NAV. In addition, FVLETF
will have a lower expense ratio than FVLCEF for at least two years
following the reorganization. "We are very pleased to welcome First
Trust back to the Amex as they launch trading in the second
closed-end fund to convert into an ETF to date," said Scott Ebner,
Senior Vice President of the ETF Marketplace at the Amex. "The Amex
and First Trust share a commitment to providing innovative
solutions for investors." FVLETF 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(R) 100 Index
(Symbol: VLFVL). The fund will normally invest at least 90% of its
total assets in common stocks that comprise the Index. The Index is
designed to objectively identify and select 100 stocks ranked #1 by
Value Line, Inc.(R) in the Value Line(R) Timeliness(TM) Ranking
System. Dan Waldron, Senior Vice President of First Trust, says
that "the conversion of FVLCEF into an ETF allows us to maintain
the same investment strategy and the integrity of the process - two
key benefits to investors." The specialist for the new ETF is
Goldman Sachs Execution & Clearing, L.P. About the American
Stock Exchange The American Stock Exchange(R) (Amex(R)) offers
trading across a full range of equities, options and exchange
traded funds (ETFs), including structured products and HOLDRS(SM).
In addition to its role as a national equities market, the Amex is
the pioneer of the ETF, responsible for bringing the first domestic
product to market in 1993. Leading the industry in ETF listings,
the Amex lists 321 ETFs to date. The Amex is also one of the
largest options exchanges in the U.S., trading options on
broad-based and sector indexes as well as domestic and foreign
stocks. For more information, please visit http://www.amex.com/
About First Trust Advisors L.P. and First Trust Portfolios L.P.
First Trust Advisors L.P. and its affiliate, First Trust Portfolios
L.P., are privately-held investment services companies which were
established in 1991 and operate nationwide and also in Canada and
Europe. The firms provide a variety of investment services,
including asset management, financial advisory services, and
municipal and corporate investment banking. The firms currently
have assets under management or supervision of over $30 billion
through closed-end funds, unit investment trusts, open end funds,
separate managed accounts and exchange-traded funds. 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 about 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: Bari Trontz of American Stock Exchange,
+1-212-306-8964, Web site: http://www.amex.com/
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