SCHEDULE: BNY Mellon Discloses 15.4% Stake in First Trust ETF

Bank of New York Mellon Corporation and its subsidiaries reported a 15.4% beneficial ownership stake in First Trust Horizon Managed Volatility Domestic ETF as of September 30, 2025.

Summary

• Bank of New York Mellon Corporation and its direct and indirect subsidiaries collectively hold a 15.4% beneficial ownership stake in First Trust Horizon Managed Volatility Domestic ETF.
• The aggregate amount beneficially owned by Bank of New York Mellon Corp is 368,443 shares.
• BNY Mellon IHC, LLC, MBC Investments Corp, and BNY Mellon Advisors, Inc. each beneficially own 368,440 shares, representing 15.4% of the class.
• The ownership is held in various fiduciary capacities, meaning another entity is entitled to dividends or proceeds of sale, with no single other person's interest exceeding 5%.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 7

Explanation: The filing indicates a significant, stable institutional ownership by a major financial entity in a passive investment vehicle, suggesting confidence in the ETF. The nature of the filing (13G/A) is routine for such holdings, and the certification confirms a passive investment intent.

Positives

• A major financial institution, Bank of New York Mellon, holds a significant 15.4% stake, indicating institutional confidence in the First Trust Horizon Managed Volatility Domestic ETF.
• The ownership is held in fiduciary capacities, suggesting a stable, long-term investment approach rather than speculative trading.

Negatives

• The filing does not provide comparative data from previous periods, making it impossible to assess if the ownership percentage has increased or decreased relative to prior disclosures.

Risks

• The beneficial ownership is held in fiduciary capacities, meaning the reporting persons do not directly receive dividends or proceeds from sale, which could limit their direct financial incentive in the ETF's performance beyond their fiduciary duties.

Future Outlook

The filing is a disclosure of beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's performance or future plans.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 240.14a-11."

Industry Context

This filing reflects a common practice among large financial institutions like BNY Mellon, which manage significant assets across various investment vehicles, including ETFs, on behalf of clients. Their substantial stake in a managed volatility ETF aligns with broader industry trends focusing on risk management and diversified investment strategies.

Comparison to Industry Standards

• BNY Mellon's role as a significant beneficial owner through various subsidiaries (parent holding company, investment adviser) is standard for large, diversified financial services firms managing client assets.
• The disclosure of ownership in an ETF like First Trust Horizon Managed Volatility Domestic ETF is consistent with institutional investment strategies that seek exposure to specific market segments or risk profiles.
• The 15.4% stake is a substantial institutional holding, comparable to the significant positions often held by major asset managers in popular ETFs, reflecting a long-term, passive investment approach.

Related Party Transactions

• The filing clarifies that all securities are beneficially owned by The Bank of New York Mellon Corporation and its direct or indirect subsidiaries, acting in various fiduciary capacities. This indicates an internal relationship among the reporting entities for ownership attribution.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake by BNY Mellon may provide a sense of stability and institutional backing for the First Trust Horizon Managed Volatility Domestic ETF.
• Customers (of BNY Mellon): The ownership reflects BNY Mellon's management of assets on behalf of its clients through various investment vehicles.

Key Dates

Keywords

First Trust Exchange-Traded Fund III, First Trust Horizon Managed Volatility Domestic ETF, BNY Mellon, Bank of New York Mellon, Schedule 13G, Beneficial Ownership, ETF, Investment Adviser, Parent Holding Company, Passive Investment, Institutional Ownership