First Trust Advisors L.P. ("FTA") announces the declaration of
the monthly distribution for First Trust Enhanced Short Maturity
ETF, a series of First Trust Exchange-Traded Fund IV.
The following dates apply to today's
distribution declaration:
Expected Ex-Dividend Date:
September 30, 2020
Record Date:
October 1, 2020
Payable Date:
October 5, 2020
Ticker
Exchange
Fund Name
Frequency
Ordinary
Income Per Share Amount
ACTIVELY MANAGED EXCHANGE-TRADED
FUNDS
First Trust Exchange-Traded Fund
IV
FTSM
Nasdaq
First Trust Enhanced Short Maturity
ETF
Monthly
$0.0350
First Trust Advisors L.P. ("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 $152 billion as of
August 31, 2020 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 the Fund before investing. The prospectus for the
Fund contains this and other important information and is available
free of charge by calling toll-free at 1-800-621-1675 or visiting
www.ftportfolios.com. The prospectus should be read carefully
before investing.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost.
Principal Risk Factors: The Fund's shares will change in value,
and you could lose money by investing in the Fund. An investment in
the 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 the
Fund's investment objectives will be achieved. An investment in the
Fund involves risks similar to those of investing in any portfolio
of securities traded on exchanges. The risks of investing in the
Fund are spelled out in its prospectus, shareholder report, and
other regulatory filings.
Securities held by a fund, as well as shares of a fund itself,
are subject to market fluctuations caused by factors such as
general economic conditions, political events, regulatory 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 of the risk of loss
associated with these market fluctuations. In addition, local,
regional or global events such as war, acts of terrorism, spread of
infectious diseases or other public health issues, recessions, or
other events could have a significant negative impact on a fund and
its investments. Such events may affect certain geographic regions,
countries, sectors and industries more significantly than others.
The outbreak of the respiratory disease designated as COVID-19 in
December 2019 has caused significant volatility and declines in
global financial markets, which have caused losses for investors.
The impact of this COVID-19 pandemic may last for an extended
period of time and will continue to impact the economy for the
foreseeable future.
Investors buying or selling Fund shares on the secondary market
may incur customary brokerage commissions. 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 the Fund by authorized participants, in very
large creation/redemption units. If the 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 the Fund's
net asset value and possibly face delisting.
The risk of investing in mortgage-related and other asset-based
securities include interest rate risk, extension risk and
prepayment risk. Generally, rising interest rates tend to extend
the duration of fixed rate mortgage-related securities, making them
more sensitive to changes in interest rates. Extension risk is
prevalent when in a period of rising interest rates, the fund holds
mortgage-related securities and such securities exhibit additional
volatility. Prepayments can reduce the returns of the fund because
the fund may have to reinvest that money at the lower prevailing
interest rates. The fund’s investments in asset-backed securities
are subject to risks similar to those associated with
mortgage-related securities, as well as additional risks associated
with the nature of the assets and the servicing of those assets.
Investments in asset-backed or mortgage-backed securities offered
by non-governmental issuers, such as commercial banks, savings and
loans, private mortgage insurance companies, mortgage bankers and
other secondary market issuers are subject to additional risks.
One of the principal risks of investing in a Fund is market
risk. Market risk is the risk that a particular security owned by
the Fund, Fund shares or securities in general may fall in
value.
An actively managed ETF is subject to management risk because it
is an actively managed portfolio. In managing such a Fund's
investment portfolio, the portfolio managers, management team, or
advisor, will apply investment techniques and risk analyses that
may not have the desired result.
An investment in a Fund containing securities of non-U.S.
issuers is subject to additional risks, including currency
fluctuations, political risks, withholding, the lack of adequate
financial information, and exchange control restrictions impacting
non-U.S. issuers.
The Fund is subject to credit risk, call risk, income risk,
interest rate risk and prepayment risk. Credit risk is the risk
that an issuer of a security will be unable or unwilling to make
dividend, interest and/or principal payments when due and that the
value of a security may decline as a result. Credit risk is
heightened for floating-rate loans and high-yield securities. Call
risk is the risk that if an issuer calls higher-yielding debt
instruments held by the Fund, performance could be adversely
impacted. Income risk is the risk that income from a Fund's
fixed-income investments could decline during periods of falling
interest rates. Interest rate risk is the risk that the value of
the fixed-income securities in the Fund will decline because of
rising market interest rates. Prepayment risk is the risk that
during periods of falling interest rates, an issuer may exercise
its right to pay principal on an obligation earlier than expected.
This may result in a decline in the Fund's income.
Senior floating-rate 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. High-yield securities, or "junk" bonds, are
subject to greater market fluctuations and risk of loss than
securities with higher ratings, and therefore, may be highly
speculative. These securities are issued by companies that may have
limited operating history, narrowly focused operations, and/or
other impediments to the timely payment of periodic interest and
principal at maturity. The market for high yield securities is
smaller and less liquid than that for investment grade
securities.
In 2012, regulators in the United States and the United Kingdom
alleged that certain banks, including some banks serving on the
panel for U.S. dollar LIBOR, engaged in manipulative acts in
connection with their submissions to the British Bankers
Association. Manipulation of the LIBOR rate-setting process would
raise the risk to the Fund of being adversely impacted if the Fund
received a payment based upon LIBOR and such manipulation of LIBOR
resulted in lower resets than would have occurred had there been no
manipulation. In 2017, the head of the United Kingdom’s Financial
Conduct Authority announced a desire to phase out the use of LIBOR
by the end of 2021. There remains uncertainty regarding the future
utilization of LIBOR and the nature of any replacement rate. As
such, the potential effect of a transition away from LIBOR on the
Fund or the financial instruments in which the Fund invests cannot
yet be determined.
The Fund may effect a portion of creations and redemptions for
cash, rather than in-kind securities. 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 and redemptions for
in-kind securities.
The Fund may invest in other investment companies which involves
additional expenses that would not be present in a direct
investment in the underlying funds. In addition, the Fund's
investment performance and risks may be related to the investment
and performance of the underlying funds.
The Fund is classified as "non-diversified" and may invest a
relatively high percentage of its assets in a limited number of
issuers. As a result, the Fund may be more susceptible to a single
adverse economic or regulatory occurrence affecting one or more of
these issuers, experience increased volatility and be highly
concentrated in certain issuers.
Volatility is the characteristic of a security, an index or a
market to fluctuate significantly in price within a short time
period. The fund may invest in securities or financial instruments
that exhibit more volatility than the market as a whole. Such
exposures could cause the Fund’s net asset value to experience
significant increases or declines in value over short periods of
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200929006115/en/
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