First Trust plans to launch First Trust Managed Municipal ETF

By Toni Weeks

San Luis Obispo, Calif., Dec. 20 - First Trust Exchange-Traded Fund III announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a new municipal exchange-traded fund.

The First Trust Managed Municipal ETF will seek to generate current income that is exempt from regular federal income taxes, and its secondary objective will be long-term capital appreciation. Under normal market conditions, it will invest at least 80% of its net assets, including investment borrowings, in municipal debt securities that pay interest that is exempt from regular federal income taxes. Investments will primarily be rated investment grade.

Tom Futrell and Johnathan N. Wilhelm will be the portfolio managers.

The ETF will list its shares on the Nasdaq; the ticker symbol has not been set.

There will be no shareholder fees. Management fees and total annual fund operating expenses have not yet been determined.

Wheaton, Ill.-based First Trust Advisors LP will serve as the investment adviser.

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