Daily ETF Watch: New RiverFront Funds Coming

First Trust to team up with RiverFront on active equity ETF suite.

Reviewed by: Heather Bell
Edited by: Heather Bell

First Trust recently filed for four actively managed international equity ETFs that will be subadvised by RiverFront Investment Group. The four funds will apply currency hedging as needed and target stocks based primarily on their value, quality and momentum attributes.

The ETFs outlined in the filing include the following:

  • First Trust RiverFront Dynamic Asia Pacific ETF
  • First Trust RiverFront Dynamic Developed International ETF
  • First Trust RiverFront Dynamic Emerging Markets ETF
  • First Trust RiverFront Dynamic Europe ETF

The currency hedges will be dynamic, with each currency in a particular fund seeing its hedge adjusted based on quantitative measures and qualitative data, such as guidance provided by central banks, the prospectus said.

Components will be selected mainly based on a proprietary scoring system that evaluates companies based on their exposure to the value, quality and momentum factors. The funds will apply a proprietary process to ensure that each portfolio has optimal investment in the highest-scoring equities in their respective investment universes.

PowerShares filed for funds with a similar investment approach last month and a similar dynamic currency hedging strategy, but instead of being actively managed, they will track indexes provided by RiverFront.

The First Trust filing did not include tickers or expense ratios, but it did note that the funds are slated to list on the Nasdaq stock exchange.

Contact Heather Bell at [email protected].

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.