First Trust Advisors L.P. Introduces the FIRST ETF Focused on the Global Manufacturing of Automobiles

First Trust Advisors L.P. (“First Trust”), the fastest growing Exchange-Traded Fund (“ETF”) sponsor among the ten largest sponsors (by assets raised) since 2010, announced today that Ryan Issakainen, Vice President, ETF Strategist, will ring the opening bell of The NASDAQ Stock Market at 9:30 a.m. Eastern Time on Friday, May 13, 2011, to celebrate the release of the first ETF focused on the global manufacturing of automobiles. First Trust executives and guests will participate in the event. The bell ringing will recognize the launch of the first automotive ETF in the industry, the First Trust NASDAQ Global Auto Index Fund (NASDAQ:CARZ), which is expected to begin trading May 10, 2011. The Fund will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the NASDAQ OMX Global Auto IndexSM, which is designed to track the performance of the largest and most liquid companies engaged in the manufacturing of automobiles. 

 First Trust believes the timely release of this automotive ETF recognizes the contributions of the automotive industry to the world economy and the millions of jobs it generates worldwide. 

“First Trust is pleased to introduce the first global ETF focused on the automotive industry,” said Ryan Issakainen, Vice President, ETF Strategist, First Trust Advisors L.P. “We are launching this fund as a way for investors to potentially capitalize on the trend toward increasing demand of automobiles which has led automakers and suppliers to grow in emerging markets and consolidate operations in mature markets. According to Zacks Equity Research, the stage has been set for growth over the next decade with the belief the global auto industry landscape will be ruled by automakers based in the six major auto markets of China, India, Japan, Korea, Western Europe and the U.S.” 

“The International Monetary Fund projects global GDP growth to be 4.4% in 2011 and 4.5% in 2012, while emerging economies are projected to grow by 6.5% in both 2011 and 2012, strong enough to support further recovery in auto sales in developed markets and continued growth in the emerging markets,” Issakainen added. 

“J.D. Power and Associates expects auto sales in the U.S. to reach 13 million units, up 12% from 2010. However, in 2010, for the first time, emerging markets accounted for 51% of global light-vehicle sales, signaling the shift of power in the global automotive market that has been taking place during the past five years. Both China and India ended 2010 with sales of light vehicles up by more than 30%. Momentum in the emerging markets is expected to continue throughout 2011, with China as the driver for global market growth,” Issakainen added. 

To view the live webcast of the opening bell, visit the NASDAQ website ( at 9:25 a.m. (Eastern Time) on Friday, May 13, 2011. 

About First Trust Advisors L.P.  

First Trust Advisors L.P., the Fund’s investment advisor, along with its affiliate First Trust Portfolios L.P., the Fund’s distributor, are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and municipal and corporate investment banking, with collective assets under management or supervision of approximately $50 billion as of April 30, 2011 through closed-end funds, unit investment trusts, exchange-traded funds, mutual funds and separate managed accounts. For more information, please visit 

Principal Risk Factors 

You should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit to obtain a prospectus and summary prospectus which contains this and other information about the Fund. The prospectus and summary prospectus should be read carefully before investing. 

Risk Considerations 

The Fund’s shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund involves risks similar to those of investing in any fund of equity securities traded on exchanges. One of the principal risks of investing in the Fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. 

You should anticipate that the value of the shares will decline, more or less, in correlation with any decline in the value of the index. The Fund’s return may not match the return of the index. The Fund may not be fully invested at times. Securities held by the Fund will generally not be bought or sold in response to market fluctuations and the securities may be issued by companies concentrated in a particular industry, region or country. 

The Fund’s return may not match the return of the NASDAQ OMX Global Auto IndexSM. The Fund may not be fully invested at times. Securities held by the Fund will generally not be bought or sold in response to market fluctuations. The Fund will invest in stocks of companies in the automotive industry. You should be aware that an investment in a portfolio which is concentrated in a particular industry involves additional risks, including limited diversification. The automotive industry can be highly cyclical, and companies in the industry may suffer periodic operating losses. The industry can be significantly affected by labor relations and fluctuating component prices. While most of the major manufacturers are large, financially strong companies, many others are small and can be non-diversified in both product line and customer base. 

An investment in a fund containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers. Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less developed, less liquid, less regulated, and more volatile than the U.S. and developed foreign markets. 

The Fund will invest in the stocks of companies operating in Japan. Because Japan’s economy and equity market share a strong correlation with the U.S. markets, the Japanese economy may be affected by economic problems in the U.S. Japan also has a growing economic relationship with China and other Southeast Asian countries, and thus Japan’s economy may also be affected by economic, political or social instability in those countries. Japanese securities may also be subject to lack of liquidity; excessive taxation; government seizure of assets; different legal or accounting standards and less government supervision and regulation of exchanges than in the U.S. Furthermore, the natural disasters that have impacted Japan and the ongoing recovery efforts have had a negative effect on Japan’s economy, and may continue to do so. 

Opinions and projections are as of the date of release and are subject to change due to changes in the market or economic conditions. There is no assurance that the projections will be realized. 

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. 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, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. 

This Fund is classified as “non-diversified.” A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies. 

Not FDIC Insured • Not Bank Guaranteed • May Lose Value 


NEWSTAGE media, Inc.
Dean Smith, (303) 653-7602
[email protected]
Kyle White, (561) 310-6440
[email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *