First Trust, the seventh-largest U.S. issuer of exchange traded funds, said it will reverse split the First Trust Indxx Global Agriculture ETF (NasdaqGM: FTAG).
The First Trust Indxx Global Agriculture ETF will be reverse split on a one-for-five basis with the split being reflected on or about May 2, according to a statement issued by Illinois-based First Trust.
“The reverse share split will result in every five outstanding shares being converted into one share, thereby reducing the number of shares outstanding. Fractional shares will be paid out in cash to the beneficial shareholder. Once the reverse share split is complete, each shareholder’s account will reflect one-fifth fewer shares with a net asset value per share that reflects the combined shares. The Fund’s shares will continue to trade under the same ticker symbol, FTAG,” according to First Trust.
FTAG, previously known as the the First Trust Global Platinum Index Fund, debuted more than six years ago and has $4.5 million in assets under management. The ETF holds 46 stocks.
FTAG follows the Indxx Global Agriculture Index, which “is a market capitalization weighted index designed to measure the performance of companies which are directly or indirectly engaged in improving agricultural yields,” according to First Trust.
FTAG charges 0.7% per year, or $70 for every $10,000 invested.
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