New ETF will Invest in a Diverse Set of Liquid, TSX listed ETFs in a Risk Managed Framework
TORONTO, July 23, 2014 /CNW/ - FT Portfolios Canada Co. ("First Trust Canada"), a privately owned company is pleased to announce the launch of the common and advisor class of units of the First Trust Global Risk Managed Income Index ETF (TSX: ETP/ETP.A).
The First Trust ETF seeks to replicate, to the extent possible, the performance of the NASDAQ Global Risk Managed Income IndexSM (the "Index"), net of expenses. The investment strategy of the First Trust ETF is to invest in and hold constituent securities of the Index in the same proportion as they are reflected in the Index or securities intended to replicate the performance of the Index. The Index seeks to provide a risk managed, global income portfolio which generates a high yield for the risk taken and consists of liquid income-bearing exchange traded funds ("ETFs") and other exchange traded products across various asset classes.
"We are pleased to partner with Nasdaq OMX and Newfound Research LLC on a strategy which we believe provides a compelling income solution for Canadian investors," said Fraser Howell, chief executive officer of FT Portfolios Canada Co. "In the current low yield environment where many investors and advisors actively hunt for the dual goals of income generation and risk mitigation, we feel our new First Trust ETF (TSX:ETP) may provide the flexibility to potentially achieve both objectives."
"The Canadian ETF market boasts over 300+ ETFs which tap into everything from dividend paying equities to niche bond markets such as convertible bonds and senior loans. We feel the desire for a simplified, single ticker solution comprised of some of the largest and most liquid income based ETFs in Canada is a significant need across many investor and advisor wish lists," added Karl Cheong, senior vice president of First Trust Canada.
"NASDAQ's suite of income indexes have long been standard benchmarks and we are proud First Trust has launched a product on one of the most innovative income indexes in the market. NASDAQ's partnership with Newfound has resulted in an expansion of income investing from the traditional to the technical" said Dave Gedeon from NASDAQ.
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 June 30, 2014, First Trust Advisors L.P., the portfolio advisor for the First Trust Global Risk Managed Income Index ETF, oversee more than US$98 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.
NASDAQ®, OMX®, NASDAQ OMX®, NASDAQ Global Risk Managed Income IndexSM are registered trademarks or service marks of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as the "Corporations") or Newfound Research LLC ("Newfound"), and are licensed for use by FT Portfolios Canada Co. Units of the First Trust ETF (the "Products") have not been passed on by the Corporations or Newfound as to their legality or suitability. The Products are not issued, endorsed, sold, or promoted by the Corporations or Newfound. Neither the Corporations nor Newfound make any warranties and bear no liability with respect to the Products.
SOURCE: FT Portfolios Canada Co.
For further information: Media Contact: Fraser Howell, President, FT Portfolios Canada Co., 330 Bay Street, Suite 1300, Toronto, Ontario, M5H 2S8, Email: FraserHowell@firsttrust.ca, 1-877-622-5552