SCHEDULE: BNY Mellon Discloses 17.7% Stake in First Trust ETF

Bank of New York Mellon Corporation and its subsidiaries have reported a 17.7% beneficial ownership stake in First Trust Horizon Managed Volatility Domestic ETF.

Summary

• Bank of New York Mellon Corporation and its direct and indirect subsidiaries, including BNY Mellon IHC, LLC, MBC Investments Corp, and BNY Mellon Advisors, Inc., have filed a Schedule 13G.
• The filing reports beneficial ownership of First Trust Horizon Managed Volatility Domestic ETF (CUSIP: 33739P889).
• Bank of New York Mellon Corporation beneficially owns an aggregate of 371,702 shares, representing 17.7% of the class.
• BNY Mellon IHC, LLC, MBC Investments Corp, and BNY Mellon Advisors, Inc. each beneficially own an aggregate of 371,700 shares, also representing 17.7% of the class.
• The shares are held in various fiduciary capacities, and no single other person's interest in the securities reported exceeds 5%.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of or with the effect of changing or influencing the control of the issuer.

Sentiment

Score: 7

Explanation: The filing indicates a substantial, stable institutional investment by a major financial entity in the ETF, suggesting confidence and a long-term holding strategy without intent to influence control. This is generally a positive signal for the ETF's stability and liquidity.

Positives

• Significant institutional ownership by a major financial institution like Bank of New York Mellon, indicating confidence in the ETF.
• The ownership is for investment purposes in the ordinary course of business, not for control, suggesting a stable, long-term holding.

Risks

• The filing states that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, mitigating a common risk associated with large stakes.

Future Outlook

NA

Industry Context

This filing indicates a significant institutional investment by Bank of New York Mellon, a major global investment company, in a First Trust Exchange-Traded Fund. Such large holdings by institutional investors are common for ETFs, as they often manage portfolios for various clients, and reflect the fund's inclusion in their investment strategies.

Stakeholder Impact

• Shareholders: Increased institutional ownership can provide stability and liquidity to the ETF.

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 Management, Institutional Investor, Passive Investment