First Trust Advisors has launched the International Multi-Asset Diversified Income Index Fund, an exchange-traded fund (ETF) which is expected to begin trading on NASDAQ on 23 August 2013.
The new fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the NASDAQ International Multi-Asset Diversified Income Index.
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The fund will provide international exposure to a diversified mix of asset classes in a single investment portfolio that has built-in volatility screens.
The fund also offers the potential for a lower-risk total return alternative to investing solely in one asset class and may provide less interest-rate sensitivity than traditional fixed-income securities.
The index is comprised of international dividend-paying stocks, international real estate investment trusts (REITs), non-U.S. infrastructure companies, non-U.S. preferred securities and an ETF that invests in non-U.S. debt instruments.
Ryan Issakainen, senior vice president and ETF strategist at First Trust, said: "The Fund will seek to deliver a relatively high level of income for investors, while also providing diversification benefits to traditional fixed income portfolios.
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By GlobalData"This diversified approach, with built-in rebalancing, may also help income-seeking investors maintain discipline during periods of volatility," Issakainen added.
