First Trust Launches First Trust ISE Global Platinum Index Fund (PLTM)
First Trust has launched its “First Trust ISE Global Platinum Index Fund” (PLTM). The Fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the ISE Global Platinum™ Index (the “Index”).
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The Fund will normally invest at least 90% of its net assets in securities that comprise the Index or in depositary receipts representing foreign securities in the Index. The Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Index. First Trust seeks a correlation of 0.95 or better (before fees and expenses) between the Fund’s performance and the performance of the Index; a figure of 1.00 would represent perfect
correlation.
The Index is developed and owned by International Securities Exchange, LLC (“ISE” or the “Index Provider”). The Index is designed to provide a benchmark for investors interested in tracking public companies that are active in platinum group metals (“PGM”) mining based on revenue analysis of those companies. PGMs collectively refer to six elements, platinum, palladium, osmium, iridium, ruthenium and rhodium, which have similar physical and chemical properties and tend to occur together in the same mineral deposits. Issuers of component securities must be actively engaged in some aspect of PGM mining such as mining, refining or exploration. The Index has been created to provide investors with a product allowing them to quickly take advantage of both event-driven news and long-term trends as the need for PGMs continues to evolve.
ISE reviews the Index components quarterly in March, June, September and December of each year for eligibility and sets each component’s weight in the Index according to the Index methodology. Changes are announced on ISE’s publicly available website at www.ise.com at least five days prior to the effective date. As of February 26, 2010, there were 25 securities that comprised the Index and 94.6% of the companies were domiciled in non-U.S. countries. The issuers that comprised the Index represented nine countries, some of which are emerging market countries, and were traded on nine exchanges throughout the world.
For more information on this fund click: HERE
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