First Trust ETF to Become Active Factor Emerging Markets Fund, Cuts Fee 10bps
RFEM•First Trust RiverFront Dynamic Emerging Markets ETF will be renamed First Trust Active Factor Emerging Markets ETF and will replace its currency-hedged strategy with a quantitative multi-factor model targeting value, momentum, quality and low-volatility. Annual fee drops from 0.95% to 0.85% and management moves to the First Trust Investment Committee.
1. Name and Ticker Change
The First Trust RiverFront Dynamic Emerging Markets ETF will be renamed First Trust Active Factor Emerging Markets ETF, adopting ticker AFEM. These changes are expected to take effect on or around September 14, 2026.
2. Strategy Shift and Policy Update
The Fund will abandon its existing currency-hedged dynamic emerging markets strategy and adopt a non-fundamental policy to invest at least 80% of net assets in securities of emerging market companies. It will use a quantitative multi-factor methodology focusing on value, momentum, quality and low-volatility factors.
3. Fee Reduction and Management Restructure
The annual fee will decrease from 0.95% to 0.85% of average daily net assets. Portfolio management responsibility will transfer to the First Trust Investment Committee, and the current sub-advisor arrangement will be eliminated.
