SCHEDULE: BNY Mellon Discloses 22.1% Stake in First Trust ETF

Bank of New York Mellon Corporation and its subsidiaries have disclosed a significant 22.1% beneficial ownership stake in First Trust Horizon Managed Volatility Small/Mid ETF.

Summary

• Bank of New York Mellon Corporation and its direct and indirect subsidiaries collectively hold a beneficial ownership of 132,448 shares in First Trust Horizon Managed Volatility Small/Mid ETF.
• This aggregate ownership represents 22.1% of the class of securities.
• The shares are held in various fiduciary capacities by the reporting entities.
• Key reporting entities include Bank of New York Mellon Corp, BNY Mellon IHC, LLC, MBC Investments Corp, and BNY Mellon Advisors, Inc., each reporting approximately 22.1% beneficial ownership due to shared control and aggregation rules.
• The filing indicates that no single other person's interest in the securities reported exceeds 5%.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership and does not contain information that inherently indicates positive or negative sentiment regarding the issuer's performance or outlook.

Positives

• Disclosure of a significant institutional stake by a major financial institution like BNY Mellon may signal confidence in the First Trust Horizon Managed Volatility Small/Mid ETF.

Negatives

• No specific negative information is disclosed in this Schedule 13G filing, as it primarily reports beneficial ownership.

Risks

• The filing itself does not detail specific risks related to the issuer's operations or financial health, focusing solely on beneficial ownership disclosure.

Future Outlook

This Schedule 13G filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's future performance or strategy.

Industry Context

This filing is a routine disclosure by a large institutional investor, Bank of New York Mellon Corporation, detailing its passive beneficial ownership in an Exchange-Traded Fund (ETF). Such filings provide transparency into significant institutional holdings, which can influence market perception of the ETF's stability and liquidity. It reflects BNY Mellon's role as a major asset manager and custodian, holding securities in various fiduciary capacities for its clients.

Comparison to Industry Standards

• This filing is a standard Schedule 13G, which is a mandatory disclosure for institutional investors acquiring more than 5% of a company's voting class of securities, provided they do not intend to influence or control the issuer. The reported 22.1% stake is a substantial holding for an institutional investor in an ETF.
• The structure of ownership, with multiple BNY Mellon subsidiaries reporting beneficial ownership, is typical for large financial conglomerates that manage assets across various legal entities (e.g., investment advisers, holding companies, banks).

Related Party Transactions

• The beneficial ownership is held by The Bank of New York Mellon Corporation and its direct or indirect subsidiaries in their various fiduciary capacities, indicating transactions within the corporate group.

Stakeholder Impact

• Shareholders of First Trust Horizon Managed Volatility Small/Mid ETF gain transparency into a significant institutional holder's stake, which can provide insights into market liquidity and institutional interest.
• The disclosure confirms that BNY Mellon's holdings are for ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Key Dates

Keywords

Beneficial Ownership, Schedule 13G, SEC Filing, First Trust, ETF, Exchange-Traded Fund, BNY Mellon, Institutional Ownership, Investment Management, Financial Disclosure