A posting entitled, "Money Market Reform and the Opportunity for Enhanced Cash ETFs," says, "On October 14, 2016, the final provisions for money market fund (MMF) reform took effect, but these long-awaited regulatory changes have already begun to have significant effects on MMFs. Below, we present a summary of some of the key elements of MMF reform, along with an assessment of potential opportunities that have emerged for investors in non-money market ETFs that employ enhanced cash strategies, such as the First Trust Enhanced Short Maturity ETF (FTSM)." It adds, "Money market funds may fall short in meeting the income and liquidity needs of many investors, especially in the midst of today's ultra-low interest rate environment. When considering MMFs, investors must choose between accepting the very low yields produced by government MMFs, or seeking slightly higher yields offered by non-government MMFs (prime and tax-exempt), accompanied by the potential for liquidity fees and gates. For such investors, who are willing to take on more risks, we believe that ETFs employing enhanced cash strategies, such as the First Trust Enhanced Short Maturity ETF (FTSM), may provide a compelling alternative to money market funds. FTSM is an actively managed ETF that utilizes a low duration strategy (0.28 year effective duration4), focused on preserving capital and providing intraday liquidity, while seeking to provide a higher level of income than MMFs. As an ETF, the fund's NAV is calculated to reflect the market value of its underlying portfolio on a daily basis, just as institutional prime and tax-exempt MMFs are now required to do. However, unlike both retail and institutional (prime and tax-exempt) MMFs, FTSM is not required to impose liquidity fees and gates, which we believe to be a key advantage."

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