First Trust Completes Closed-End Fund Conversion to Income ETF

First Trust has completed the reorganization of the First Trust Senior Floating Rate Income Fund II (FCT) into the First Trust Flexible Income ETF (FFLX), marking another conversion from a closed-end fund to an ETF structure. FCT shareholders received FFLX shares equal to the net asset value of their holdings, while the ETF assumed the fund’s assets and liabilities. FFLX is actively managed and targets current income through a diversified portfolio of fixed-income assets, including corporate bonds, bank loans, mortgage-backed securities, CLOs and preferred securities. The move reflects the growing industry trend of migrating assets from closed-end funds into more flexible ETF vehicles.