Today, First Trust transferred 10 AlphaDEX® ETFs from NYSE Arca to The Nasdaq Stock Market®. Each ETF will list and trade its shares on Nasdaq under the same ticker symbol as was used on NYSE. Additionally, each ETF’s Index Provider will change to Nasdaq Global Indexes.
“The transfer of these 10 ETFs is evidence of First Trust’s confidence that the Nasdaq marketplace is a leader in ETF listing and trading,” said Jeffrey McCarthy, Head of ETP Listings at Nasdaq. “These products exemplify the importance of exchange listing diversification and how Nasdaq is positioned to provide multi-faceted solutions to ETF issuers by supporting index creation, calculation, listing and trading-through the benchmark switch of these funds to Nasdaq Indexes. We look forward to continuing our successful partnership with First Trust and the AlphaDEX team in the future.”
Each ETF will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of a Nasdaq AlphaDEX® Equity Index (each, a “New Index”). Each New Index is a modified equal-dollar weighted index developed and maintained by Nasdaq that may generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX® selection methodology.
To learn more about Nasdaq Global Indexes, click here and a Nasdaq Global Indexes representative will contact you directly.
This week we launched the Nasdaq CEA Cybersecurity IndexSM to track the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors. It includes companies primarily involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices in order to provide protection of the integrity of data and network operations.
Following the launch of the index, First Trust listed the First Trust Nasdaq CEA Cybersecurity ETF (Symbol: CIBR) on The Nasdaq Stock Market®. The Fund uses an indexing investment approach to attempt to replicate, before fees and expenses, the performance of the Nasdaq CEA Cybersecurity IndexSM (NQCYBR). To learn more about the ETF, click here.
Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants that 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.
To learn more about our one-stop shop ETF and indexing solution, please visit our website. For a custom solution for your index or ETF, please feel free to reach out and we will get back to you.
The Dorsey Wright Focus Five Index launched in February 2014 and over the past year has outperformed the US markets by 13% on a price return basis. The Focus Five methodology is rooted in selecting the five highest ranked sector ETFs from First Trust’s ETF line-up based on the Dorsey Wright proprietary relative strength model. Relative strength is a momentum technique that relies on unbiased, unemotional and objective data, rather than biased forecasting and subjective research.
At its core, Focus Five is the embodiment of a sector rotation strategy and offers a broad market experience but enhances returns by only tracking the best performing sectors on a relative strength basis. Currently the sector rotation strategy is in Biotechnology, Internet, Consumer Staples, Health Care, and Consumer Discretion. It is clear that the market leader sectors are those focused on the individual – between consumer sectors and health care – and the individual has been a driving force on the market’s returns.
Focus Five has also generated this outperformance without generating significantly higher volatility than the broad market. The information ratio is a high 0.75 and the risk-adjusted return is significantly higher than the broad market.
March 2014 marked the one-year anniversary for the associated ETF, the First Trust Dorsey Wright Focus 5 ETF (FV).
Which five ETFs do you think should come into focus next?
*Source: Nasdaq as of May 8, 2015
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. The performance numbers above reflect the performance of an index. Indexes are not available for direct investment and do not contain fees. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. Actual results may differ materially from those expressed or implied. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
On the heels of the recent launch of the NASDAQ International Multi-Asset Diversified Income Index (NQMAXUS), First Trust today launched a new low volatality, high yield exchange-traded product (ETF), the International Multi-Asset Diversified Income Index Fund (Ticker Symbol: YDIV), tracking the index.
Similar to the First Trust U.S. Multi-Asset Diversified Income Fund (MDIV), YDIV provides a diversified strategy with high yield components such as dividend-paying equities, real estate investment trusts (REITs), preferred stocks, infrastructure securities and fixed-income ETFs (represented by EMB, the iShares J.P. Morgan USD Emerging Markets Bond ETF.) With the exception of the fixed income, the asset class segments are generally derived from broad global benchmarks that exclude U.S. securities.
To read more about NQMAXUS, the benchmarking index for YDIV, DOWNLOAD our latest Research piece.