First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, has launched seven new ETFs based on the Nasdaq US Smart Sector IndexesSM. The indexes, which are created and administered by Nasdaq, Inc. (“Nasdaq”), are modified factor-weighted indexes designed to provide exposure to US economic sectors. The seven funds are listed below:
First Trust Nasdaq Bank ETF (Nasdaq: FTXO)
First Trust Nasdaq Food & Beverage ETF (Nasdaq: FTXG)
First Trust Nasdaq Oil & Gas ETF (Nasdaq: FTXN)
First Trust Nasdaq Pharmaceuticals ETF (Nasdaq: FTXH)
First Trust Nasdaq Retail ETF (Nasdaq: FTXD)
First Trust Nasdaq Semiconductor ETF (Nasdaq: FTXL)
First Trust Nasdaq Transportation ETF (Nasdaq: FTXR)
“Nasdaq designed the index family to blend three known and powerful investment factors to create a smarter approach to sector investing," said Dave Gedeon, Vice President and Head of Research & Development at Nasdaq Global Indexes. To construct each index, Nasdaq selects the most liquid eligible securities within a specific sector from the Nasdaq US Benchmark Index and then ranks them on the three factors - volatility, value and growth. The securities that are selected for each index are weighted based upon their combined score of the three factors. “The Smart Sector family was built off our focus on delivering outcome-oriented strategies to investors,” Gedeon said.
“These ETFs provide investment advisors with a new set of tools for investing in important industries, while biasing portfolio exposure toward lower valuations, stronger momentum, and less volatility,” said Ryan Issakainen, CFA, Senior Vice President, Exchange-Traded Fund Strategist at First Trust.
For more information about First Trust, please contact Ryan Issakainen of First Trust at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust Advisors L.P., along with its affiliate First Trust Portfolios L.P., are privately held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $99 billion as of August 31, 2016 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.
You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit www.ftportfolios.com to obtain a prospectus or summary prospectus which contains this and other information about a fund. The prospectus or summary prospectus should be read carefully before investing.
The funds list and principally trade their shares on The Nasdaq Stock
A fund’s return may not match the return of the applicable index. Securities held by a fund will generally not be bought or sold in response to market fluctuations.
Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share’s net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from a fund by authorized participants, in very large creation/redemption units. If the fund’s authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund’s net asset value and possibly face delisting.
A fund’s shares will change in value, and you could lose money by
investing in a fund. One of the principal risks of investing in a fund
is market risk. Market risk is the risk that a particular security owned
by a fund, fund shares or securities in general may fall in value. There
can be no assurance that a fund's investment objective will be achieved.
The funds invest in securities issued by companies concentrated in a particular industry or sector, which involves additional risks including limited diversification. A fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.
The funds currently have fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the funds’ market exposure for limited periods of time.
The funds are classified as “non-diversified” and may invest a relatively high percentage of their assets in a limited number of issuers. As a result, the funds may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
First Trust Advisors L.P. is the adviser to the funds. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the funds’ distributor.
Nasdaq® and Nasdaq US Smart Sector Indexes℠ are registered trademarks and service marks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by First Trust Advisors L.P. The funds have not been passed on by the Corporations as to their legality or suitability. The funds are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.