First Trust launches US Large Cap AlphaDEX ETF on Xetra

May 17th, 2017 | By | Category: Equities

First Trust Global Portfolios has launched the First Trust US Large Cap Core AlphaDEX UCITS ETF (FTGU) on Deutsche Börse‘s Xetra platform.

First Trust launch AlphaDEX ETF on Xetra

First Trust launch AlphaDEX ETF on Xetra

The fund tracks the NASDAQ AlphaDEX Large Cap Core Index which uses a smart beta framework to select stocks from the underlying NASDAQ US 500 Large Cap Index in an attempt to generate positive alpha.

The AlphaDEX methodology selects companies based on value factors such as price-to-book ratio, price-to-cash flow ratio, and return on capital; and on growth factors such as momentum, revenue growth and price-to-sales ratio.

A modified equal-weighting scheme is used to prevent over concentration in individual firms while tilting in favour of companies which score impressively according to the AlphaDEX selection process.

The index currently has 375 constituents with the largest sector exposures being consumer discretionary (19.4%), financials (17.0%) and information technology (16.7%).

Eric Anderson, senior vice president for Europe at First Trust Advisors, commented: “We are very excited to bring our 24th listing in Europe – and our second listing on the Deutsche Börse. The Deutsche Börse is one of the most important trading venues in Europe, and is a critical exchange for providing access to German and pan-European investors. This euro-based listing is the fourth listing for the First Trust US Large Cap AlphaDEX UCITS ETF here in Europe.”

The ETF is already listed on the London Stock Exchange, with three share classes: GBP-accumulating, GBP-distributing and USD-accumulating, with the ticker codes FEX, FEXD, and FEXU respectively.

FTGU trades in euros and income is treated as accumulating within the fund. Each share class has a total expense ratio of 0.65% and the combined AUM of the fund is $100 million.

First Trust offers eight UCITS ETFs that employ the AlphaDEX methodology covering US large caps, US small caps Japan, the UK, Germany, Switzerland, emerging markets and the Eurozone.

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