First Trust Advisors L.P. ("FTA") announces the declaration of
the monthly distribution for First Trust Income Opportunities ETF,
advised by FTA.
The following dates apply to today's
distribution declaration:
Expected Ex-Dividend Date:
May 14, 2024
Record Date:
May 15, 2024
Payable Date:
May 31, 2024
Ticker
Exchange
Fund
Name
Frequency
Ordinary
Income
Per
Share
Amount
ACTIVELY MANAGED
EXCHANGE-TRADED FUNDS
First Trust Exchange-Traded
Fund VIII
FCEF
Nasdaq
First Trust Income Opportunities
ETF
Monthly
$0.1250
FTA is a federally registered investment advisor and serves as
the Fund's investment advisor. FTA and its affiliate First Trust
Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are
privately-held companies that provide a variety of investment
services. FTA has collective assets under management or supervision
of approximately $218 billion as of April 30, 2024 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual
funds and separate managed accounts. FTA is the supervisor of the
First Trust unit investment trusts, while FTP is the sponsor. FTP
is also a distributor of mutual fund shares and exchange-traded
fund creation units. FTA and FTP are based in Wheaton,
Illinois.
You should consider the investment objectives, risks, charges
and expenses of a Fund before investing. Prospectuses for the Funds
contain this and other important information and are available free
of charge by calling toll-free at 1-800-621-1675 or visiting
https://www.ftportfolios.com. A prospectus should be read
carefully before investing.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the fund are identified below. The
material risks of investing in the fund are spelled out in its
prospectus, statement of additional information and other
regulatory filings. The order of the below risk factors does not
indicate the significance of any particular risk factor.
Past performance is no assurance of future results. Investment
return and market value of an investment in a Fund will fluctuate.
Shares, when sold, may be worth more or less than their original
cost.
A Fund's shares will change in value, and you could lose money
by investing in a Fund. An investment in a Fund is not a deposit of
a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency. There can
be no assurance that a Fund's investment objectives will be
achieved. An investment in a Fund involves risks similar to those
of investing in any portfolio of equity securities traded on
exchanges. The risks of investing in each Fund are spelled out in
its prospectus, shareholder report, and other regulatory
filings.
Investors buying or selling fund shares on the secondary market
may incur customary brokerage commissions. Market prices may differ
to some degree from the net asset value of the shares. Investors
who sell fund shares may receive less than the share’s net asset
value. Shares may be sold throughout the day on the exchange
through any brokerage account. However, unlike mutual funds, shares
may only be redeemed directly from a fund by authorized
participants in very large creation/redemption units. If a fund’s
authorized participants are unable to proceed with creation/
redemption orders and no other authorized participant is able to
step forward to create or redeem, fund shares may trade at a
discount to a fund’s net asset value and possibly face
delisting.
Market risk is the risk that a particular investment, or shares
of a fund in general may fall in value. Investments held by the
Fund are subject to market fluctuations caused by real or perceived
adverse economic conditions, political events, regulatory factors
or market developments, changes in interest rates and perceived
trends in securities prices. Shares of a fund could decline in
value or underperform other investments as a result. In addition,
local, regional or global events such as war, acts of terrorism,
market manipulation, government defaults, government shutdowns,
regulatory actions, political changes, diplomatic developments, the
imposition of sanctions and other similar measures, spread of
infectious disease or other public health issues, recessions,
natural disasters or other events could have significant negative
impact on a fund and its investments.
Current market conditions risk is the risk that a particular
investment, or shares of the fund in general, may fall in value due
to current market conditions. As a means to fight inflation, the
Federal Reserve and certain foreign central banks have raised
interest rates and expect to continue to do so, and the Federal
Reserve has announced that it intends to reverse previously
implemented quantitative easing. Recent and potential future bank
failures could result in disruption to the broader banking industry
or markets generally and reduce confidence in financial
institutions and the economy as a whole, which may also heighten
market volatility and reduce liquidity. Ongoing armed conflicts
between Russia and Ukraine in Europe and among Israel, Hamas and
other militant groups in the Middle East, have caused and could
continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East and the
United States. The hostilities and sanctions resulting from those
hostilities have and could continue to have a significant impact on
certain fund investments as well as fund performance and liquidity.
The COVID-19 global pandemic, or any future public health crisis,
and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and
uncertainty in global financial markets, negatively impacting
global growth prospects.
In managing a fund’s investment portfolio, the portfolio
managers will apply investment techniques and risk analyses that
may not have the desired result.
All or a portion of a fund's otherwise exempt-interest dividends
may be taxable to those shareholders subject to the federal and
state alternative minimum tax.
Asset-backed securities are a type of debt security and are
generally not backed by the full faith and credit of the U.S.
government and are subject to the risk of default on the underlying
asset or loan, particularly during periods of economic
downturn.
A fund that effects all or a portion of its creations and
redemptions for cash rather than in-kind may be less
tax-efficient.
Because the shares of CEFs cannot be redeemed upon demand,
shares of many CEFs will trade on exchanges at market prices rather
than net asset value, which may cause the shares to trade at a
price greater than NAV (premium) or less than NAV (discount). A
fund may invest in the shares of CEFs which involves additional
expenses that would not be present in a direct investment in the
underlying funds. In addition, a fund’s investment performance and
risks may be related to the investment performance and risks of the
underlying funds.
Commodity prices can have significant volatility, and exposure
to commodities can cause the value of a fund’s shares to decline or
fluctuate in a rapid and unpredictable manner.
A convertible security is exposed to risks associated with both
equity and debt securities. The value of convertibles may rise and
fall with the market value of the underlying stock or vary with
changes in interest rates and credit quality of the issuer.
A fund may be subject to the risk that a counterparty will not
fulfill its obligations which may result in significant financial
loss to a fund.
Covenant-lite loans contain fewer maintenance covenants than
traditional loans and may not include terms that allow the lender
to monitor the financial performance of the borrower and declare a
default if certain criteria are breached. This may hinder a fund’s
ability to mitigate problems and increase a fund’s exposure to
losses on such investments.
A fund is susceptible to operational risks through breaches in
cyber security. Such events could cause a fund to incur regulatory
penalties, reputational damage, additional compliance costs
associated with corrective measures and/or financial loss.
Investments in debt securities subject a fund to call risk,
credit risk, extension risk, income risk, inflation risk, interest
rate risk, liquidity risk, prepayment risk, valuation risk and zero
coupon risk. These risks could result in a decline in a security’s
value and/or income, increased volatility as interest rates rise or
fall and have an adverse impact on a fund’s performance.
The use of derivatives instruments involves different and
possibly greater risks than investing directly in securities
including counterparty risk, valuation risk, volatility risk, and
liquidity risk. Further, losses because of adverse movements in the
price or value of the underlying asset, index or rate may be
magnified by certain features of the derivatives.
A fund that expects to make distributions on a regular basis
normally distributes income it earns. A fund may be required to
reduce its distributions if it has insufficient income.
Distributions in excess of a fund's current and accumulated
earnings and profits will be treated as a return of capital. There
may be other circumstances when all or a portion of a fund’s
distribution is treated as a return of capital, for example, there
are times when fund securities are sold to cover a derivative
position that generated all or a portion of the distribution that
could lead to a return of capital.
Distressed securities are speculative and often illiquid or
trade in low volumes and thus may be more difficult to value and
pose a substantial risk of default.
Companies that issue dividend-paying securities are not required
to continue to pay dividends on such securities. Therefore, there
is a possibility that such companies could reduce or eliminate the
payment of dividends in the future.
A fund may invest in the shares of other ETFs, which involves
additional expenses that would not be present in a direct
investment in the underlying funds. In addition, a fund’s
investment performance and risks may be related to the investment
performance and risks of the underlying funds.
Floating rate securities are structured so that the security’s
coupon rate fluctuates based upon the level of a reference rate. As
a result, the coupon on floating rate securities will generally
decline in a falling interest rate environment, causing a fund to
experience a reduction in the income it receives from the security.
A floating rate security’s coupon rate resets periodically
according to the terms of the security. Consequently, in a rising
interest rate environment, floating rate securities with coupon
rates that reset infrequently may lag behind the changes in market
interest rates.
High yield securities, or “junk” bonds, are less liquid and are
subject to greater market fluctuations and risk of loss than
securities with higher ratings, and therefore, are considered to be
highly speculative.
As inflation increases, the present value of the Fund’s assets
and distributions may decline.
An underlying fund may invest in inverse floating rate
securities which create effective leverage and thus, the value of
the inverse floater will increase and decrease to a significantly
greater extent. Custodial receipt trusts may issue inverse floater
securities and if an underlying fund were to hold inverse floaters
issued by custodial receipt trusts, the underlying fund would be
subject to the risks of inverse floaters.
A fund’s investment in other investment companies is restricted
by federal securities laws which limits the size of the position a
fund can take in another investment company. These limitations may
prevent a fund from purchasing shares of an investment company that
it may have otherwise purchased.
Large capitalization companies may grow at a slower rate than
the overall market.
Leverage may result in losses that exceed the mount originally
invested and may accelerate the rates of losses. Leverage tends to
magnify, sometimes significantly, the effect of any increase or
decrease in a fund’s exposure to an asset or class of assets and
may cause the value of a fund’s shares to be volatile and sensitive
to market swings.
To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as
a reference interest rate, it is subject to LIBOR Risk. LIBOR has
ceased to be made available as a reference rate and there is no
assurance that any alternative reference rate, including the
Secured Overnight Financing Rate ("SOFR"), will be similar to or
produce the same value or economic equivalence as LIBOR. The
unavailability or replacement of LIBOR may affect the value,
liquidity or return on certain fund investments and may result in
costs incurred in connection with closing out positions and
entering into new trades. Any potential effects of the transition
away from LIBOR on a fund or on certain instruments in which a fund
invests is difficult to predict and could result in losses to the
fund.
Certain fund investments may be subject to restrictions on
resale, trade over-the-counter or in limited volume, or lack an
active trading market. Illiquid securities may trade at a discount
and may be subject to wide fluctuations in market value.
Master limited partnerships (MLPs) are subject to certain risks,
including price and supply fluctuations caused by international
politics, energy conservation, taxes, price controls, and other
regulatory policies of various governments. In addition, there is
the risk that MLPs could be taxed as corporations, resulting in
decreased returns from such MLPs.
Mortgage-related securities are more susceptible to adverse
economic, political or regulatory events that affect the value of
real estate. They are also subject to the risk that the rate of
mortgage prepayments decreases, which extends the average life of a
security and increases the interest rate exposure.
Participation interests in municipal leases pose special risks
because many leases and contracts contain “non-appropriation”
clauses that provide that the governmental issuer has no obligation
to make future payments under the lease or contract unless money is
appropriated for this purpose by the appropriate legislative
body.
The values of municipal securities may be adversely affected by
local political and economic conditions and developments. Income
from municipal securities could be declared taxable because of,
among other things, unfavorable changes in tax laws, adverse
interpretations by the Internal Revenue Service or state tax
authorities, or noncompliant conduct of an issuer.
Inventories of municipal securities have decreased in recent
years and some municipal securities may have resale restrictions
lessening the ability to make a market in these securities. This
reduction in market making capacity has the potential to decrease a
fund’s ability to buy or sell municipal securities and increase
price volatility and trading costs.
There is no assurance that a fund will be able to sell a
portfolio security at the price established by a pricing service,
which could result in a loss to a fund.
Securities of non-U.S. issuers are subject to additional risks,
including currency fluctuations, political risks, withholding, the
lack of liquidity, the lack of adequate financial information, and
exchange control restrictions impacting non-U.S. issuers.
A fund and a fund's advisor may seek to reduce various
operational risks through controls and procedures, but it is not
possible to completely protect against such risks. The fund also
relies on third parties for a range of services, including custody,
and any delay or failure related to those services may affect the
fund’s ability to meet its objective.
Preferred securities combine some of the characteristics of both
common stocks and bonds. Preferred stocks are typically
subordinated to other debt instruments in terms of priority to
corporate income, and therefore will be subject to greater credit
risk than those debt instruments.
The securities held in an escrow fund pledged to pay the
principal and interest of a pre-refunded bond do not guarantee the
price of the bond.
Private activity bonds can have a substantially different credit
profile than the municipality or public authority that issued them
and may be negatively impacted by conditions affecting the general
credit of the private enterprise or the project itself.
REITs are subject to certain risks, including changes in the
real estate market, vacancy rates and competition, volatile
interest rates and economic recession.
Companies that issue loans tend to be highly leveraged and thus
are more susceptible to the risks of interest deferral, default
and/or bankruptcy. Loans are usually rated below investment grade
but may also be unrated. As a result, the risks associated with
these loans are similar to the risks of high yield fixed income
instruments. The senior loan market has seen a significant increase
in loans with weaker lender protections which may impact recovery
values and/or trading levels in the future.
A fund with significant exposure to a single asset class,
country, region, industry, or sector may be more affected by an
adverse economic or political development than a broadly
diversified fund.
Securities of small- and mid-capitalization companies may
experience greater price volatility and be less liquid than larger,
more established companies.
Investments in sovereign bonds involve special risks because the
governmental authority that controls the repayment of the debt may
be unwilling or unable to repay the principal and/or interest when
due. In times of economic uncertainty, the prices of these
securities may be more volatile than those of corporate debt or
other government debt obligations.
Trading on the exchange may be halted due to market conditions
or other reasons. There can be no assurance that the requirements
to maintain the listing of a fund on the exchange will continue to
be met or be unchanged.
Securities issued or guaranteed by federal agencies and U.S.
government sponsored instrumentalities may or may not be backed by
the full faith and credit of the U.S. government.
A fund may hold securities or other assets that may be valued on
the basis of factors other than market quotations. This may occur
because the asset or security does not trade on a centralized
exchange, or in times of market turmoil or reduced liquidity.
Portfolio holdings that are valued using techniques other than
market quotations, including “fair valued” assets or securities,
may be subject to greater fluctuation in their valuations from one
day to the next than if market quotations were used. There is no
assurance that a fund could sell or close out a portfolio position
for the value established for it at any time.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
The Securities and Exchange Commission (“SEC”) has adopted Rule
12d1-4 under the Investment Company Act of 1940 (the “1940 Act”)
which the funds must comply with in order to invest in shares of
other investment companies (“acquired funds”) beyond the statutory
limits of Section 12 of the 1940 Act. Rule 12d1-4 permits a fund to
invest beyond the statutory limits subject to a set of new
conditions, including limits on control and voting of acquired
funds’ shares, evaluations and findings by the fund's investment
adviser, fund investing agreements, and limits on most three-tier
fund structures. Rule 12d1-4 replaces certain exemptive relief and
no-action letters from the SEC which have been rescinded. These
regulatory changes may adversely impact the fund’s ability to
pursue its investment objective as the fund may not be able to
invest in certain funds it would otherwise have invested in without
the Rule 12d1-4 restrictions. Additionally, the limitations under
Rule 12d1-4 may impact the Advisor’s ability to allocate shares of
acquired funds among the fund and other funds in the Advisor’s
complex, which could negatively impact the fund. Other funds may
also use Rule 12d1-4 to limit or prohibit the fund from investing
in them. These limitations could negatively impact fund
performance. In order to comply with certain provisions of Rule
12d1-4, notwithstanding anything to the contrary in each fund's
prospectus, summary prospectus, or statement of additional
information, each fund generally intends to effect creations for
cash rather than in-kind. As a result, an investment in the fund
may be less tax-efficient than an investment in an exchange-traded
fund that effects its creations only in-kind.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240513740128/en/
Press Inquiries: Ryan Issakainen, 630-765-8689 Broker Inquiries:
Sales Team, 866-848-9727 Analyst Inquiries: Stan Ueland,
630-517-7633
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