First Trust, the sixth-largest U.S. issuer of exchange traded funds, said it has approved an additional fee waiver for the recently launched First Trust Enhanced Short Maturity ETF (NasdaqGM: FTSM) and that the new ETF will be reverse split.
Illinois-based First Trust approved an additional waiver of FTSM’s “management fees in the amount of 0.10% of the Fund’s average daily net assets for a period of one year beginning October 29, 2014,” according to a statement from the issuer.
“With the additional fee waiver, the Fund’s total annual fund operating expenses after fee waivers and offsets will be 0.25% of the Fund’s average daily net assets. The Fund’s annual unitary management fee is 0.45% of the Fund’s average daily net assets. First Trust previously agreed to waive management fees in the amount of 0.10% of the Fund’s average daily net assets until August 6, 2015 and to reduce management fees by the proportional amount of the Fund’s acquired fund fees and expenses for the Fund’s investment in other investment companies managed by First Trust.”
FTSM, which debuted in mid-August will also be reverse split on a one-for-two basis. That reverse split will be effective on or about Nov. 10.