First Trust Files For First Trust Global Agriculture AlphaDEX Fund ETF
First Trust has filed paperwork with the SEC for a “First Trust Global Agriculture AlphaDEX Fund” ETF. The First Trust Global Agriculture AlphaDEX(R) Fund (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 StrataQuant Global Agriculture Index (the “Index”). They did not specify a trading symbol or expense ratio in the initial filing.
PRINCIPAL INVESTMENT STRATEGIES
The Fund will normally invest at least 90% of its net assets plus the amount of any borrowings for investment purposes in stocks and/or depositary receipts that comprise 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. First Trust will regularly monitor the Fund’s tracking accuracy and will seek to maintain an appropriate correlation.
The Index is in the “StrataQuant Index Series,” a family of custom enhanced indices developed, maintained and sponsored by NYSE Euronext or its affiliates (“NYSE Euronext” or the “Index Provider”), and licensed to First Trust Portfolios L.P. by Archipelago Holdings, Inc. (“Archipelago”), an affiliate of NYSE Euronext. The Index is a fundamentally weighted index designed by NYSE Euronext to objectively identify and select securities determined to be involved in the global agriculture industry (the “Base Universe”) that may generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX(R) selection methodology. The companies for the Base Universe are selected based on these rules: all global companies in selected industries deemed to be involved in agriculture that (1) meet minimum liquidity requirements and (2) have a market cap greater than $1 billion. NYSE Euronext creates and maintains the Base Universe. Additional information regarding the Base Universe is set forth under “Index Information.” Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark. As of ________, 2012, the Index was comprised of __ securities.
For the complete filing click: HERE