New Community Bank ETF sets July 1 launch date.

First Trust Advisors on Friday announced plans to launch its new exchange-traded fund focused on community banks on July 1.

The firm had previously filed for Securities and Exchange Commission approval to offer the fund. (See related story here.)

But the press splash is the company's first comments after completing the required regulatory process. It also provided full details of the ticker and made official the new ETF's name: The First Trust Nasdaq ABA Community Bank Fund (NASDAQ: QABA).

First Trust will serve as the investment adviser for the fund. It will come with an expense ratio of 0.60%, according to the ETF's prospectus.

Community banks follow a different economic paradigm than the New York-centered financial giants; they’re even quite different from the regional banking companies captured by ETFs such as the SPDR KBW Regional Banking ETF (NYSE Arca: KRE). When well-run, they tend to

Underlying index contains significant exclusion criteria.

First Trust is making plans to launch a new exchange-traded fund tied to the community banking industry, according to new papers filed at the Securities & Exchange Commission.

The Wheaton, Ill.-based funds provider filed a prospectus for a new ETF that would track the NASDAQ ABA Community Bank Index, which captures small- and mid-cap community banks listed on the NASDAQ Stock Exchange.

The index has a variety of exclusion criteria designed to maintain a pure-play focus on the community banking sector. Companies entering the index, for example, cannot be among the 50 largest banks or thrifts based on asset size; cannot focus on international servicing; cannot specialize in credit cards; etc. In other words, they are supposed to be local banks.

Community banks follow a different economic paradigm than the New York-centered financial giants; they’re even quite different from the regional banking companies captured by ETFs such as