About First Trust Vivaldi Merger Arbitrage ETF (MARB)

The First Trust Vivaldi Merger Arbitrage ETF (MARB) is an exchange-traded fund that seeks to provide investors with exposure to the strategy of merger arbitrage. The fund is managed by First Trust Advisors, a leading investment firm known for its innovative ETF offerings. Merger arbitrage is an investment strategy that aims to profit from the price movements of companies involved in mergers and acquisitions. The strategy involves buying shares of the target company and short-selling shares of the acquiring company, with the expectation that the target company's stock price will increase while the acquiring company's stock price will decrease. By leveraging this price discrepancy, the fund aims to generate consistent returns for its investors.

MARB's portfolio consists primarily of U.S. equities, focusing on companies across various sectors that are involved in merger and acquisition activity. The fund's holdings are selected using a proprietary algorithm that considers factors such as deal size, deal spread, and deal completion likelihood. This algorithm allows the fund's managers to identify attractive merger arbitrage opportunities and optimize the portfolio for maximum returns. Additionally, the fund may use derivative instruments, such as options and futures contracts, to further enhance its investment strategy.