First Trust has filed paperwork with the SEC for a “Multi-Asset Diversified Income Index Fund.” The Fund will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the NASDAQ Multi-Asset Diversified Income Index. They did not specify a trading symbol or expense ratio in the initial filing, although they did note the fund will trade on the NASDAQ.
PRINCIPAL INVESTMENT STRATEGIES
The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in the common stocks and/or depositary receipts, real estate investment trusts (“REITs”), preferred securities, master limited partnerships (“MLPs”) and an exchange-traded fund that comprise the Index.
The Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Index. First Trust Advisors L.P. (“First Trust” or the “Advisor”), the Fund’s investment advisor, 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 seek to maintain an appropriate correlation.
The Index is owned and was developed by NASDAQ (the “Index Provider”). The Index Provider also calculates and maintains the Index. The Index is designed to provide access to a diversified portfolio of income producing securities, which are composed of domestic and international dividend-paying stocks, master limited partnerships, U.S.-listed preferred securities and an exchange-traded fund that invests in high yield bonds.
The Index uses a proprietary modified market capitalization-weighted methodology. The Index Provider evaluates the Index components quarterly in March, June, September and December of each year for eligibility, using market data through the end of January, April, July and October, respectively. Eligible components for the Index are identified as such using the eligibility criteria set forth in this Prospectus under “Index Information.” The Index is rebalanced quarterly. Rebalancing is effective as of the market close of the third Friday in March, June, September and December. The reference dates for the data used in the review are at the close of trading on the last trading day in February, May, August and November, respectively. As of May 31, 2012, the Index was comprised of 126 securities.
The Fund intends to invest entirely in securities included in the Index; however, there may also be instances in which the Fund may be underweighted or overweighted in certain securities in the Index, not invest in certain securities included in the Index, purchase securities not in the Index that are appropriate to substitute for certain securities in the Index or utilize various combinations of the above techniques in seeking to track the Index.
For the complete filing click: HERE
Guggenheim Multi-Asset Income (NYSEARCA:CVY)
The Guggenheim Multi-Asset Income ETF (NYSEARCA:CVY), seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Zacks Multi-Asset Income Index (the “Zacks Multi-Asset Income Index” or “Index”). The Fund expects to use a sampling approach in seeking to achieve its objective. Sampling means that Guggenheim Funds Investment Advisors, LLC (the “Investment Adviser”) uses quantitative analysis to select stocks from the Index universe to obtain a representative sample of stocks that resemble the Index in terms of key risk factors, performance attributes and other characteristics. However, the Fund may use replication to achieve its objective if practicable.
Guggenheim International Multi-Asset Inc (NYSEARCA:HGI)
The Guggenheim International Multi-Asset Income ETF (NYSEARCA:HGI), seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an index called the Zacks International Multi-Asset Income Index. The Fund will invest at least 90% of its total assets in securities that comprise the Index (and underlying securities representing the American despositary receipts included in the Index).