WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. (“First Trust”), a leading ETF provider and asset manager announced today that the First Trust Global Tactical Commodity Strategy Fund (NASDAQ: FTGC) has received the Best New Commodity ETF award from ETF.com. This honor is awarded to the most important commodity ETF launched in 2013 according to ETF.com.
“On behalf of the entire First Trust Team, we are excited to win the award for Best New Commodity ETF for 2013,” said Rob Guttschow, CFA and Senior Portfolio Manager of the fund. “Our goal in creating the First Trust Global Tactical Commodity Strategy Fund was to provide investors with an innovative, convenient way to gain exposure to a diversified portfolio of commodity futures through a wholly-owned subsidiary of the fund, while providing a 1099 form for tax reporting purposes. This actively managed ETF also employs a unique strategy that seeks to manage portfolio volatility and the futures contract roll.”
Along with Rob Guttschow, John Gambla, CFA, FRM, PRM, also serves as Senior Portfolio Manager of the fund. The two are primarily responsible for daily investment decisions under the direction of First Trust’s Investment Committee, which includes six other individuals with extensive investment experience. The fund provides daily liquidity and full transparency to holdings and pricing.
The ETF.com awards recognize the products, companies and people that are delivering innovative products to the market and helping improve investor outcomes. Winners of the awards were selected in a three-part process designed to leverage the insights and opinions of leaders throughout the ETF industry. ETF.com solicited nominations from more than 15,000 members of the ETF community and, from the group of nominations, the ETF.com ETF Awards Nominating Committee voted to select up to five finalists in each category. Winners among these finalists were selected by a majority vote of the ETF.com Awards Selection Committee, a group of independent ETF experts from throughout the ETF community.
For more information about First Trust, please contact Ryan Issakainen of First Trust at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust Advisors L.P., along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $86 billion as of February 28, 2014 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is based in Wheaton, Illinois. First Trust Advisors L.P., the investment adviser of the fund, is registered as a commodity pool operator and commodity trading advisor and is also a member of the National Futures Association. For more information, visit http://www.ftportfolios.com.
You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 to obtain a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.
The fund lists and principally trades its shares on The NASDAQ Stock Market LLC.
The fund may not be fully invested at times. Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. 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.
The fund’s shares will change in value and you could lose money by investing in the fund. The fund is subject to market risk. The trading prices of commodities futures, fixed income securities and other instruments fluctuate in response to a variety of factors. The fund’s net asset value and market price may fluctuate significantly in response to these factors. As a result, an investor could lose money over short or long periods of time. In addition, the net asset value of the fund over short-term periods may be more volatile than other investment options because of the fund’s significant use of financial instruments that have a leveraging effect. There is no guarantee that any leveraging strategy the fund employs will be successful.
The value of commodities and commodity-linked instruments typically is based upon the price movements of a physical commodity or an economic variable linked to such price movements. The prices of commodities and commodities-linked instruments may fluctuate quickly and dramatically and may not correlate to price movements in other asset classes. An active trading market may not exist for certain commodities. Each of these factors and events could have a significant negative impact on the fund. All futures and futures-related products are highly volatile. Price movements are influenced by a variety of factors. The value of commodities, commodity-linked instruments, futures and futures-related products may be affected by changes in overall economic conditions, changes in interest rates, or factors affecting a particular commodity or industry, such as production, supply, demand, drought, floods, weather, political, economic and regulatory developments.
The fund does not invest directly in futures instruments. Rather, it invests in a wholly-owned subsidiary, which has the same investment objective as the fund, but unlike the fund, it may invest without limitation in futures instruments. The subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. Thus, the fund, as an investor in the subsidiary, does not have all the protections offered to investors in registered investment companies.
The fund’s strategy may frequently involve buying and selling portfolio securities to rebalance the fund’s exposure to various market sectors. Higher portfolio turnover may result in the fund paying higher levels of transaction costs and generating greater tax liabilities for shareholders.
The fund is subject to management risk because it is an actively managed portfolio. The advisor will apply investment techniques and risk analyses that may not have the desired result.
The fund currently intends to effect most creations and redemptions, in whole or in part for cash, rather than in-kind securities. As a result, the fund may be less tax-efficient than if it were to sell and redeem its shares principally in-kind.
The fund, through the subsidiary, will engage in trading on commodity markets outside the United States. Trading on such markets is not regulated by any United States government agency and may involve certain risks not applicable to trading on United States exchanges. The fund holds investments that are denominated in non-U.S. currencies, or in securities that provide exposure to such currencies, currency exchange rates or interest rates denominated in such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies may affect the value of the fund’s investments and the value of the fund’s shares. Commodity futures contracts traded on non-U.S. exchanges or with non-U.S. counterparties present risks because they may not be subject to the same degree of regulation as their U.S. counterparts.
The fund may be subject to the forces of the “whipsaw” markets (as opposed to choppy or stable markets), in which significant price movements develop but then repeatedly reverse, which could cause substantial losses to the fund.
The fund is classified as “non-diversified.” A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.