Firm brings highly successful rules-based fundamental stock selection
methodology to Canadian investors
TORONTO, May 15, 2013 /CNW/ - FT Portfolios Canada Co., a privately
owned company and an affiliate of Chicago based First Trust Portfolios
L.P., a U.S. registered broker-dealer, is pleased to announce that the
first three First Trust AlphaDEXTM Dividend ETFs have completed their initial offering of units for both
the common class and advisor class units of the ETFs and are scheduled
to commence trading on Wednesday, May 15th on the Toronto Stock
First Trust AlphaDEXTM Canadian Dividend Plus ETF (TSX: FDY, FDY.A), will primarily invest in a portfolio of higher yielding Canadian
dividend paying stocks, as well as provide Unitholders with monthly
distributions. In addition, First Trust AlphaDEXTM Canadian Dividend Plus ETF will from time to time write call options on
a portion of the portfolio in order to produce additional income.
First Trust AlphaDEXTM U.S. Dividend Plus ETF (CAD-Hedged) (TSX: FUD, FUD.A), will primarily invest in a portfolio of higher yielding U.S. dividend
paying stocks, as well as provide Unitholders with monthly
distributions. In addition, First Trust AlphaDEXTM U.S. Dividend Plus ETF (CAD-Hedged) will from time to time write call
options on a portion of the portfolio in order to produce additional
First Trust AlphaDEXTM Emerging Market Dividend ETF (CAD-Hedged) (TSX: FDE, FDE.A), will primarily invest in a portfolio of dividend
paying equity securities domiciled in emerging markets and selected
from the countries represented by the S&P/BMI Emerging Markets
Index.The ETF will also provide Unitholders with monthly distributions.
" Today, FT Portfolios Canada Co. is making available the successful
rules-based AlphaDEXTM fundamental stock selection methodology to Canadian investors with our
first set of Fundamentally Weighted Dividend ETFs" said Fraser Howell,
FT Portfolio Canada's President & Chief Financial Officer. "The First
Trust AlphaDEXTM Dividend ETF family provides investors with broad market exposure to
higher yielding dividend paying stocks across different geographies."
"When you look at the Canadian ETF marketplace today, the majority of
ETFs and assets under management are tied to market capitalization
weighted indices which, by their very nature, overweight larger
potentially overvalued companies and underweight smaller, potentially
undervalued companies" adds Karl Cheong, the Senior Vice President,
Head of Product Development at FT Portfolios Canada. "We believe this
is an optimal time for Canadians to diversify their portfolios into
fundamental strategies and we are committed to providing investors with
opportunities to capitalize on companies that may have stronger
investment merit through ETFs using the proprietary AlphaDEXTM methodology."
About First Trust's AlphaDEXTM Investment Methodology
The AlphaDEXTM methodology stems from the belief that market capitalization weighted
benchmarks exhibit an inherent flaw in terms of its portfolio design.
AlphaDEX™ is a transparent and repeatable weighting methodology
grounded in fundamentals in order to exploit mispricings and potential
drawbacks of market capitalization weighted benchmarks.
The First Trust AlphaDEXTM ETFs are merit based. The methodology selects companies from a base
universe and divides them into growth and value buckets. The growth
stocks are evaluated by five metrics and allocated a score based on:
3, 6 and 12 month price appreciation
One year sales growth
The value stocks are evaluated by three metrics and allocated a score
The AlphaDEX™ methodology assigns the highest weight in each AlphaDEXTM ETF to the highest scoring stocks. The goal is to create a portfolio
that emphasizes the "best" growth stocks and "best" value stocks while
eliminating less fundamentally attractive stocks. This scalable
methodology has led to a successful global, investable family of
fundamentally weighted ETFs.
"The AlphaDEXTM methodology provides the investment marketplace with a hybrid approach
of blending the desired features of a traditional passive index
tracking ETF with the risk management and filtering process of active
management" says Bobby Eng, Senior Vice President, Head of Sales at FT
Portfolios Canada. "We believe this will be the next evolution for the
Canadian ETF marketplace."
About First Trust
The First Trust companies are a well-respected global enterprise with a
history in the U.S. market since 1991 and in Canada since 1996. First
Trust Advisors L.P., the portfolio advisor for the First Trust AlphaDEXTM ETFs, has approximately US$12 billion in ETF assets under management
and approximately US $70 billion in total assets under supervision or
management. First Trust is the umbrella name used for its various
businesses conducted in Europe, Canada and the U.S.
For further information about FT Portfolios Canada's ETFs can be found
at www.firsttrust.ca or at www.firsttrustetfs.ca
Commissions, management fees and expenses all may be associated with
investments in exchange traded funds. Please read the prospectus before
investing. Exchange traded funds are not guaranteed, their values
change frequently and past performance may not be repeated.
SOURCE: FT Portfolios Canada Co.
For further information:
Fraser Howell, President
FT Portfolios Canada Co.
330 Bay Street, Suite 1300