Closed-end fund converts into ETF format

The American Stock Exchange has begun trading in First Trust Value Line 100 Exchange-Traded Fund, an ETF converted from a closed-end fund. This new fund comes from the First Trust Value Line 100 Fund, which was switched to an ETF after shareholders approved the conversion last month. As of Friday, the conversion was finalized: The closed-end fund was delisted at the end of the day. Meanwhile, the ETF will trade on the Amex under “FVL.” The First Trust Value Line 100 ETF will strive for results that match the Value Line 100 Index, an equity index. At least 90% of the ETF’s total assets will go toward common stocks in the index. First Trust’s move is part of a strategy to trim the discount to the net asset value at which closed-end fund shares can trade. This ETF’s share price will trade closely to the net asset value. It will also have a lower expense ratio than its closed-fund predecessor for at least two years after the reorganization. Goldman Sachs Execution & Clearing L.P. will act as the fund’s specialist.