Daily ETF Watch: Eurozone Fund Planned

Sixth-largest ETF provider will launch a eurozone ETF based on the AlphaDex methodology.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Sixth-largest ETF provider will launch a eurozone ETF based on the AlphaDex methodology.

With investor interest in the eurozone increasing, despite the unrest in nearby Ukraine, First Trust has put into registration a fund that will provide smart-beta exposure to the region.

The First Trust Eurozone AlphaDex ETF will track the Nasdaq AlphaDex Eurozone Index. First Trust has launched nearly 40 ETFs using the AlphaDex methodology, which targets stocks exhibiting strong growth or value factors. According to the methodology, stocks are divided into quintiles based on the strength of their value or growth scores, with higher quintiles receiving more weight than lower ones; stocks within each quintile are equal-weighted.

Roughly $15.4 billion is invested in First Trust’s AlphaDex ETFs.

The filing did not include a ticker or expense ratio, nor did it mention on which exchange the ETF will have its primary listing.

AccuShares Announcement

AccuShares Holdings said in an early August press release that it has received its third ETF-related patent.

The firm’s three patents—Nos. 8,732,070, 8,630,935 and 8,538,860—presumably will help the firm launch futures-based ETFs that capture “spot” performance.

In March, AccuShares put seven pairs of futures-based “Spot Up” and “Spot Down” funds into registration, with the “up” funds offering long-only exposure and the “down” funds capturing inverse performance. The 14 ETFs provide exposure to things like the VIX and GSCI indexes and contracts on individual commodities.

It is not clear when the funds will launch, but the acquisition of the third patent clearly brings the firm at least a step closer to its goal.

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.