First Trust Advisors, an ETF provider and asset manager, expects to launch two new exchange-traded funds, the First Trust Eurozone AlphaDEX ETF and the First Trust International IPO ETF.
The new funds are expected to begin trading on The NASDAQ Stock Market on October 22, 2014.
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The First Trust Eurozone AlphaDEX® ETF seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the NASDAQ AlphaDEX® Eurozone Index. The index seeks to select stocks that may generate positive alpha through the use of the AlphaDEX selection methodology.
"The AlphaDEX index methodology aims to provide better long-term, risk-adjusted returns than traditional market-cap weighted indices," said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. "This ETF joins First Trust’s existing lineup of 39 other AlphaDEX ETFs, in providing stock selection and weightings based on investment merit, rather than size."
The First International IPO ETF seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the IPOX International Index. The IPOX International Index measures the performance of the 50 largest and typically most liquid companies that are domiciled outside the U.S. within the IPOX Global Composite Index (the base index).
The base index is constructed and managed to provide a broad and objective view of global aftermarket performance of recent IPOs and spin-offs in both emerging and developed countries. After applying initial screens, all eligible constituents enter the base index on the close of the sixth trading day and remain in the index for 1,000 trading days or approximately four years.
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By GlobalData"Recent IPOs and spin-offs represent an important segment of the international stock market that is often absent from broad international index ETFs," said Issakainen. "This fund provides a diversified and systematic strategy for investors to gain exposure to these stocks before many are added to broad international index funds."
