“Recent IPOs and spin-offs represent an important segment of the international stock market that is often absent from broad international index ETFs,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. “This fund provides a diversified and systematic strategy for investors to gain exposure to these stocks before many are added to broad international index funds.”
FPXI seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the IPOX International Index. The IPOX International Index measures the performance of the 50 largest and typically most liquid companies that are domiciled outside the U.S. within the IPOX Global Composite Index (the base index). The base index is constructed and managed to provide a broad and objective view of global aftermarket performance of recent IPOs and spin-offs in both emerging and developed countries. After applying initial screens for diversification, capping and liquidity, all eligible constituents generally enter the base index on the close of the sixth trading day. The 50 largest stocks from this universe are selected for the IPOX International Index and added upon quarterly rebalance. The unique characteristics of IPOs and spin-offs tend to fade over the course of about four years, so constituent stocks are removed from the index after no more than 1000 trading days (approximately four years).
“Launching another innovative First Trust exchange-traded fund on The Nasdaq Stock Market is an exciting endeavor,” said Walt Smith, Vice President, Head of U.S. Equities at Nasdaq. “We value our position as First Trust’s listing venue partner for the First Trust International IPO ETF and will continue to offer end-to-end support as they expand their portfolio of investment ideas.”
Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world’s most innovative ventures, Nasdaq generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.
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 $90 billion as of September 30, 2014 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.
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or www.nasdaqomx.com.
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