New Fund Provides Index for Bank Securities

The First Trust NASDAQ ABA Community Bank Index Fund (NASDAQ: QABA) is scheduled to begin trading on July 1.

According to a company announcement, the fund will provide a benchmark for the investors interested in tracking the common stock of all NASDAQ listed banks and thrifts or their holding companies that are designated as banks by the American Bankers Association. The index will not include any of the 50 largest banks, or banks that are classified as having “international specialization” or a “credit-card specialization” as determined by the FDIC, the announcement said.

A security must have a market capitalization of at least $200 million, a three-month average daily dollar trading volume of at least $500 thousand and must meet certain operating history, solvency, and financial statement requirements to be included.

The index is be rebalanced quarterly and reconstituted semi-annually.