First Trust's AlphaDex ETFs Go Live

April 20, 2011

 

First Trust, the Wheaton, Ill.-based firm known for its First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG), launched 13 new ETFs using its AlphaDex indexes, including nine international and four domestic equity funds.

The international funds, all of which track “enhanced” rules-based S&P AlphaDex indexes that take into account growth and value factors when screening for securities and cost 0.80 percent in fees, include:

  • First Trust Asia Pacific Ex-Japan AlphaDex Fund (NYSEArca: FPA)
  • First Trust Europe AlphaDex Fund (NYSEArca: FEP)
  • First Trust Latin America AlphaDex Fund (NYSEArca: FLN)
  • First Trust Brazil AlphaDex Fund (NYSEArca: FBZ)
  • First Trust China AlphaDex Fund (NYSEArca: FCA)
  • First Trust Japan AlphaDex Fund (NYSEArca: FJP)
  • First Trust South Korea AlphaDex Fund (NYSEArca: FKO)
  • First Trust Developed Markets Ex-US AlphaDex Fund (NYSEArca: FDT)
  • First Trust Emerging Markets AlphaDex Fund (NYSEArca: FEM)

 

The new U.S. equity funds, all costing 0.70 percent in expense ratio, bring First Trust’s existing lineup of "size and style" AlphaDex ETFs canvassing a wide spectrum of market capitalization to 11. They are:

  • First Trust Mid Cap Growth AlphaDex Fund (NYSEArca: FNY)
  • First Trust Mid Cap Value AlphaDex Fund (NYSEArca: FNK)
  • First Trust Small Cap Growth AlphaDex Fund (NYSEArca: FYC)
  • First Trust Small Cap Value AlphaDex Fund (NYSEArca: FYT)

 

“The AlphaDEX funds are designed to do what their name implies: generate Alpha, and we are pleased with their track record since the bottom of the market in February 2009,” Dan Waldron, First Trust’s senior vice president and ETF strategist, said in a press release.

“We believe the positive effects of globalization are going to continue for years to come and investors may benefit from a globally diversified investment portfolio, particularly in emerging markets where GDP growth for 2011 is projected to be 6.4 percent, compared to 2.2 percent for advanced economies, according to the International Monetary Fund,” he added.

The lineup nearly doubles the company’s roster of AlphaDex funds, which represent more than $2.8 billion in assets, a sizable chunk of the company’s total ETF assets of $7.4 billion, according to company data.

The company’s AlphaDex benchmarks amount to a quantitatively driven, or “active,” security selection system that takes existing indexes and tweaks methodologies to try to create a better-performing product than a traditional beta index, or generate alpha. First Trust first rolled out its AlphaDex methodology in 2007.

 

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