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.

Related Link: Time To Appreciate This Value ETF

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 SYY, Best Buy Co Inc BBY and Target Corporation 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. PEP and The Coca-Cola Co 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 LLY, Johnson & Johnson JNJ and AbbVie Inc 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 INTC and Applied Materials, Inc. AMAT.

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The First Trust Nasdaq Oil & Gas ETF tracks the Nasdaq US Smart Oil & Gas Index. FXTN features Chevron Corporation CVX and Exxon Mobil Corporation XOM, the two largest U.S. oil companies, among its top 10 holdings.

The First Trust Nasdaq Bank ETF's underlying index is the Nasdaq US Smart Banks Index. Top 10 holdings in that new ETF include SunTrust Banks, Inc. STI and JPMorgan Chase & Co. JPM.

Each of the new First Trust ETFs charges 0.6 percent a year, or $60 on a $10,000 investment.

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