The new Fund will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the NASDAQ OMX ABA Community Bank Index (^ABQI).
The Shares will be listed on The NASDAQ Stock Market. Market prices may differ to some degree from the net asset value (“NAV”) of the Shares. Unlike conventional mutual funds, the Fund issues and redeems Shares on a continuous basis, at NAV, only in large specified blocks each consisting of 50,000 Shares (each block of Shares issued and redeemed, called a “Creation
Unit” and collectively, the “Creation Units”). The Fund’s Creation Units are issued and redeemed principally in-kind for securities included in the Fund.
The Fund will normally invest at least 90% of its assets in common stocks that comprise the Index. The Fund, using an “indexing” investment approach, attempts to replicate, before expenses, the performance of the Index. First Trust seeks a correlation of 0.95 or better (before fees and expenses) between the Fund’s performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. First Trust will regularly monitor the Fund’s tracking accuracy and will use the investment techniques described below in seeking to maintain an appropriate correlation.
Here is a link to the full prospectus from First Trust: Here