ETF Watch: First Trust Plans Dividend Family
The six ETFs will target dividend-paying stocks.
First Trust has filed for a family of ETFs that will be derived from the Nasdaq’s cap-weighted global indexes and target dividend-paying stocks. The six funds will list on the Nasdaq stock exchange and include the following:
- Developed International Equity Select ETF
- Emerging Markets Equity Select ETF
- Large Cap US Equity Select ETF
- Mid Cap US Equity Select ETF
- Small Cap US Equity Select ETF
- US Equity Dividend Select ETF
Each fund’s index will select its stocks from the cap-weighted parent index and screen out those components that have not paid out a dividend in the preceding 12 months. The fund index replicates the parent index’s sector weightings. All but one of the fund indexes will equal-weight the components in each sector; the US Equity Dividend Select ETF’s index will weight the components in each of its sectors by yield.
The proposed fund family combines a focus on dividends with an alternative weighting approach.
The filing did not include tickers or expense ratios.
Contact Heather Bell at [email protected].