ETF Watch: First Trust Debuts New Sector ETFs

The latest addition to the ETF market is a lineup of smart-beta sector funds.

First Trust rolled out this week seven new sector ETFs designed to be a “smarter approach” to sector investing.

The funds rely on a three-factor methodology to picking securities in a process that ultimately tilts portfolios toward “lower valuations, stronger momentum, and less volatility” within each sector, Ryan Issakainen, ETF Strategist at First Trust, said in a release.

The funds, listed on Nasdaq on Sept. 21, offer honed-in exposure to specific segments within broader sectors—the latest smart-beta ETFs to enter the market. They are:

• First Trust Nasdaq Bank ETF (FTXO)
• First Trust Nasdaq Food & Beverage ETF (FTXG)
• First Trust Nasdaq Oil & Gas ETF (FTXN)
• First Trust Nasdaq Pharmaceuticals ETF (FTXH)
• First Trust Nasdaq Retail ETF (FTXD)
• First Trust Nasdaq Semiconductor ETF (FTXL)
• First Trust Nasdaq Transportation ETF (FTXR)

ETF Closure

On another note, the Guggenheim Emerging Markets Real Estate ETF (EMRE) was shuttered this week; its last trading day was Sept. 20. The fund tracked an index of real estate firms deriving their revenues from emerging markets.

Launched two years ago, EMRE had only $2.3 million in assets under management.

Contact Cinthia Murphy at [email protected]