First Trust enters Europe with smart beta ETFs

US-based asset manager First Trust Advisors has entered the European market with three exchange-traded funds (ETFs) that employ alternative index strategies designed to beat conventional index returns.

The ETFs are based on the FTSE 100, S&P 500 and MSCI Emerging Markets indices, respectively, but incorporate a rules-based ranking system designed to prioritise the best stocks.

“The stocks are ranked according to value and growth factors, rather than market cap,” says Eric Anderson, First Trust’s vice president.

The idea is that the customised indices will outperform the indices they are based on, an approach often described as smart beta.

“Every step in the process is driven by a transparent, repeatable quantitative process,” he adds.

The funds are listed on the London and Irish stock exchanges and structured under an Irish Ucits IV company. They are from First Trust’s AlphaDEX range, which have been on sale in the US for three years.

First Trust Advisors looks after $10.6 billion (€8.1 billion) of ETF assets out of a total of $72 billion under management, as of March 31.

©2013 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST