First Trust continued its string of new fund launches this week by launching the First Trust Indxx Medical Devices ETF (MDEV) on Cboe Global Markets Tuesday, with an expense ratio of 0.70%.
MDEV tracks an index of global medical device makers with market capitalizations of at least $500 million, and a minimum liquidity standard of at least $2 million in average daily stock turnover during a six-month period.
The new ETF is the first of its kind. Two medical device ETFs currently trading solely track U.S. securities. The iShares U.S. Medical Devices ETF (IHI) has $7.6 billion in assets under management, while the SPDR S&P Health Care Equipment ETF (XHE) has $791 million in AUM. MDEV is the first to take a global perspective.
And while other established ETFs such as the iShares Global Healthcare ETF (IXJ) and the BlackRock Future Health ETF (BMED) offer some exposure to the global health care industry segment, MDEV is currently the only ETF focused solely on global medical device makers.
MDEV is the third new ETF that First Trust has launched in the past week, following Friday’s launches of two defined outcome products: the First Trust Cboe Vest Growth-100 Buffer ETF - June (QJUN) and the First Trust Cboe Vest International Equity Buffer ETF - June (YJUN).