First Trust Launches Global AlphaDEX ETF

First Trust Launches Global AlphaDEX ETF

The fund tracks 499 stocks selected by merit, not size, and costs 0.70 percent in fees  

Editor, Europe
Reviewed by: Rachael Revesz
Edited by: Rachael Revesz

First Trust has launched an exchange traded fund (ETF) that offers investors exposure to global equities that are selected and weighted based on merit, and not size, compared to traditional indexing.

The First Trust Global AlphaDEX UCITS ETF looks at the growth and value of companies to select stocks from the NASDAQ Developed Markets Index, which is designed to return higher rewards to investors over traditional indexes. The ETF costs 0.70 percent per year in fees, and will rise to 0.80 percent on 18 November 2016. The underlying index contains 499 stocks, with the biggest concentrations in consumer discretionary stocks at over 17.6 percent, and financials at almost 17 percent: the top holding is footwear company Sketchers at 0.51 percent.

Listed on the London Stock Exchange (ticker FGBL) and on Euronext Paris, this fund is the sixth ETF from the provider to follow the AlphaDEX methodology, and the seventh ETF in Europe in its overall range.

In August the provider also brought to market an ETF that tracks
initial public offerings and company spin-offs in the U.S. Before that, the First Trust Japan AlphaDEX UCITS ETF came to London on 24 June.

Rachael Revesz joined in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.