First Trust Multi-Asset Diversified Income Index Fund (NASDAQ:MDIV) Sees Large Drop in Short Interest

Key Points

• Short interest fell sharply: MDIV’s short interest declined 70.3% to 17,653 shares as of September 15, representing about 0.1% of shares outstanding and only 0.3 days to cover.
• Institutional ownership edged higher: Several investment managers increased their positions during the first quarter, including Bank of America, which held 564,283 shares, while Western Wealth Management initiated a new position.
• Monthly dividend was cut: MDIV announced a monthly dividend of $0.096, down from $0.115 previously, equating to an annualized payout of $1.15 and a 7.2% yield. Shares opened at $16.02, within their 52-week range of $15.52 to $17.02.

First Trust Multi-Asset Diversified Income Index Fund (NASDAQ:MDIV - ) saw a large decrease in short interest in the month of September. As of September 15th, there was short interest totaling 17,653 shares, a decrease of 70.3% from the August 31st total of 59,474 shares. Approximately 0.1% of the shares of the company are sold short. Based on an average daily volume of 61,531 shares, the days-to-cover ratio is presently 0.3 days.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Tcfg Wealth Management LLC increased its holdings in shares of First Trust Multi-Asset Diversified Income Index Fund by 1.3% during the 1st quarter. Tcfg Wealth Management LLC now owns 58,034 shares of the company's stock worth $938,000 after acquiring an additional 723 shares during the last quarter. Freedom Financial Partners LLC lifted its holdings in First Trust Multi-Asset Diversified Income Index Fund by 5.1% during the 1st quarter. Freedom Financial Partners LLC now owns 37,499 shares of the company's stock valued at $606,000 after purchasing an additional 1,833 shares during the last quarter. Total Clarity Wealth Management Inc. boosted its position in First Trust Multi-Asset Diversified Income Index Fund by 2.1% during the first quarter. Total Clarity Wealth Management Inc. now owns 117,910 shares of the company's stock worth $1,907,000 after purchasing an additional 2,424 shares during the period. Western Wealth Management LLC bought a new position in First Trust Multi-Asset Diversified Income Index Fund during the first quarter worth $49,000. Finally, Bank of America Corp DE increased its holdings in shares of First Trust Multi-Asset Diversified Income Index Fund by 1.2% in the first quarter. Bank of America Corp DE now owns 564,283 shares of the company's stock valued at $9,124,000 after purchasing an additional 6,656 shares during the last quarter.

First Trust Multi-Asset Diversified Income Index Fund Stock Performance

Shares of NASDAQ:MDIV opened at $16.02 on Friday. First Trust Multi-Asset Diversified Income Index Fund has a 52-week low of $15.52 and a 52-week high of $17.02. The company has a market capitalization of $412.51 million, a P/E ratio of 14.11 and a beta of 0.54. The company has a 50-day simple moving average of $16.70 and a 200 day simple moving average of $16.58.

First Trust Multi-Asset Diversified Income Index Fund Cuts Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Thursday, September 24th will be paid a $0.0960 dividend. This is a negative change from First Trust Multi-Asset Diversified Income Index Fund's previous monthly dividend of $0.1150. This represents a $1.15 annualized dividend and a yield of 7.2%. The ex-dividend date is Thursday, September 24th.

About First Trust Multi-Asset Diversified Income Index Fund

The Multi-Asset Diversified Income Index Fund (MDIV) is an exchange-traded fund that mostly invests in target outcome asset allocation. The fund tracks an index of equal-weighted US-listed securities, comprised of dividend-paying equities, REITs, preferred securities, MLPs, and a high-yield bond ETF. MDIV was launched on Aug 14, 2012 and is managed by First Trust.

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