First Trust Introduces Seven New Sector-Focused ETFs

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September 21, 2016 10:57am Nasdaq:FTXD Nasdaq:FTXG

Venerable ETF issuer First Trust just launched a suite of new sector-based ETFs based on seven distinct Nasdaq US Smart Sector Indexes.


The new funds offer access to the banking, food, energy, pharma, retail, semiconductor, and transportation arenas. Here’s a list of the just-launched ETFs, all of which begin trading on the Nasdaq today:

  • 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)

According to Nasdaq and First Trust, “Nasdaq Smart Sectors uses three factors – targeted dividend yield, momentum and low volatility – to provide the greatest potential for capital appreciation.”

From the press release:

“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.

We’ll be sure to cover these new funds in more detail as they gather some initial assets and get a bit of trading history under their belts.


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