First Trust Gets Smart With New Sector ETFs
First Trust, the seventh-largest U.S. issuer of exchange-traded funds, is already one of the largest purveyors of smart beta ETFs, including sector funds, added to its lineup of smart beta offerings last week with the addition of seven industry funds.
The new ETFs from Illinois-based First Trust include:
Allocations And Holdings
“The seven funds are based on a group of Nasdaq US Smart Sector Indexes, or modified factor-weighted indices designed to provide exposure to U.S. economic sector based on three factors: 3, 6, 9 and 12-month average price appreciation; cash flow to price; and expected volatility based on 12-month historical stock price fluctuation, according to a prospectus sheet,” reported ETF Trends.
For example, the First Trust Nasdaq Retail ETF tracks the Nasdaq US Smart Retail Index. That ETF allocates over 55 percent of its combined weight to specialty and apparel retailers. Top holdings in that new ETF include SYSCO Corporation (NYSE: SYY), Best Buy Co Inc (NYSE: BBY) and Target Corporation (NYSE: TGT).
The First Trust Nasdaq Food & Beverage ETF follows the Nasdaq US Smart Food & Beverage Index. Top holdings in that new ETF include PepiCo, Inc. (NYSE: PEP) and The Coca-Cola Co (NYSE: KO), which combine for over 16 percent of the ETF's weight.
The First Trust Nasdaq Pharmaceuticals ETF is benchmarked to the Nasdaq US Smart Pharmaceuticals Index. FTXH's top 10 holdings include Eli Lilly and Co (NYSE: LLY), Johnson & Johnson (NYSE: JNJ) and AbbVie Inc (NYSE: ABBV).
The First Trust Nasdaq Semiconductor ETF follows the Nasdaq US Smart Semiconductor Index. That new ETF holds familiar semiconductor names such as Intel Corporation (NASDAQ: INTC) and Applied Materials, Inc. (NASDAQ: AMAT).
The First Trust Nasdaq Oil & Gas ETF tracks the Nasdaq US Smart Oil & Gas Index. FXTN features Chevron Corporation (NYSE: CVX) and Exxon Mobil Corporation (NYSE: XOM), the two largest U.S. oil companies, among its top 10 holdings.
Each of the new First Trust ETFs charges 0.6 percent a year, or $60 on a $10,000 investment.
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