An index-tracking ETF based on Dorsey Wright's systematic momentum strategy with the ability to allocate to cash equivalents
TORONTO, Sept. 29, 2016 /CNW/ - FT Portfolios Canada Co. ("First Trust Canada"), a privately owned company is pleased to announce the launch of First Trust Dorsey Wright Dynamic U.S. Sector Rotation Index ETF (CAD-Hedged) (TSX: FSR).
First Trust Dorsey Wright Dynamic U.S. Sector Rotation Index ETF (CAD-Hedged) (the "First Trust ETF") seeks to replicate, to the extent possible, the performance of a total return U.S. equities industry sector rotational index, net of expenses. Currently, the First Trust ETF seeks to replicate the performance of the Dorsey Wright® Dynamic U.S. Sector Focus Five Index (the "Index"), net of expenses and will generally seek to hedge substantially all of its U.S. dollar currency exposure back to the Canadian dollar.
The Index is owned and operated by NASDAQ, Inc.
The Index employs a rules-based U.S. sector rotation strategy, which uses proprietary relative strength signals to construct a dynamic U.S. equity portfolio that provides equal-weighted exposure to five TSX-listed U.S. sector index ETFs (the "First Trust U.S. Sector ETFs") that represent the strongest U.S. sectors based on relative strength. The U.S. sectors (the "U.S. Sectors") include, but may not be limited to, the following sectors: consumer staples, consumer discretionary, energy, financial, industrials, healthcare, materials, technology and utilities. Exposure to U.S. cash equivalents is also evaluated and the inclusion and weight of a U.S. cash allocation in the Index is adjusted based upon its rank relative to the U.S. Sectors. The U.S. cash allocation is a U.S. dollar-denominated cash position represented by nine equally weighted U.S. treasury-bills ranging from 30 to 91 days in duration.
"First Trust Dorsey Wright Dynamic U.S. Sector Rotation Index ETF (CAD-Hedged) provides a simplified way for Canadian investors to gain exposure to a sector rotation strategy with the ability to allocate to cash equivalents. Dorsey Wright's research on relative strength is widely followed in North America and we are pleased to offer this ETF, which tracks an index that combines their insights with First Trust's fundamentally weighted lineup of TSX-listed U.S. sector index ETFs," said Karl Cheong, CFA, Head of ETFs at First Trust Canada.
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. As at August 31, 2016, First Trust Advisors L.P., the portfolio advisor for the First Trust Dorsey Wright Dynamic U.S. Sector Rotation Index ETF (CAD-Hedged), oversees more than US$99 billion total assets under supervision or management. First Trust is the enterprise name used for the various businesses conducted in Europe, Mexico, Canada and the U.S.
Further information about First Trust Canada's ETFs can be found at www.firsttrust.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.
The First Trust ETF is not sponsored, endorsed, sold or promoted by NASDAQ, Inc. or its affiliates (the "Corporations"). The Corporations make no representation or warranty, express or implied, to the owners of the First Trust ETF or any member of the public regarding the advisability of investing in the First Trust ETF. The Corporations' only relationship to First Trust is the licensing of certain trademarks and trade names of the Corporations and of the Index, which is determined, composed and calculated by NASDAQ without regard to First Trust or the First Trust ETF.
SOURCE FT Portfolios Canada Co.
For further information: Media Contact: Karl Cheong, Head of ETFs, Canada FT Portfolios Canada Co., 40 King Street West, Suite 3001, Email: [email protected], 1-877-622-5552