First Trust Advisors (FTA) has converted the First Trust Dynamic Europe Equity Income Fund (FDEU) into the First Trust Active Global Quality Income ETF (NYSE Arca: AGQI). The actively managed ETF begins trading on the NYSE Arca. FTA will manage the fund, while Janus Henderson Investors will subadvise.
AGQI seeks income with the potential for long-term capital growth by investing in income-producing equity securities. The ETF invests in U.S. and non-U.S. issuers. At least 40% of its net assets will target companies economically tied to different countries throughout the world, excluding the U.S.
Although the fund emphasizes investments in large-cap firms, it may invest in companies of any size. AGQI has no specific policy regarding how many countries to invest in. However, it intends to invest in at least three countries. The fund may invest up to 20% of its net assets in emerging market countries at the time of purchase.
As subadvisor, Janus Henderson will invest in dividend-paying equities, emphasizing companies that can provide stable and growing dividends. It will seek companies that can maintain and/or grow dividend payments to shareholders without compromising their financial stability.
FDEU’s shareholders approved the conversion in October after the board approved the reorganization in March. FDEU’s assets and liabilities were transferred to, and assumed by, AGQI. Its shareholders received shares of AGQI equivalent to the aggregate net asset value of the FDEU shares they held.
AGQI carries an expense ratio of 0.85%.
A Rapidly Expanding Suite of First Trust ETFs
The week prior, it launched the First Trust Emerging Markets Human Flourishing ETF (FTHF), which targets companies from emerging markets that place a premium on human dignity.
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