First Trust gives details on new First Trust Managed Municipal ETF

By Toni Weeks

San Luis Obispo, Calif., April 4 - First Trust Exchange-Traded Fund III announced in an N-1A filing with the Securities and Exchange Commission more details about its new municipal exchange-traded fund.

The First Trust Managed Municipal ETF seeks to generate current income that is exempt from regular federal income taxes, and its secondary objective is long-term capital appreciation. Under normal market conditions, it invests at least 80% of its net assets, including investment borrowings, in municipal debt securities that pay interest exempt from regular federal income taxes. The fund invests at least 65% of its net assets in investment-grade securities.

Tom Futrell and Johnathan N. Wilhelm are the portfolio managers.

The ETF will list its shares on the Nasdaq under the symbol "FMB."

There are no shareholder fees. Total annual fund operating expenses will be 0.65% and consist solely of a 0.65% management fee.

Wheaton, Ill.-based First Trust Advisors LP is the investment adviser.

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