First Trust Advisors has announced plans to launch the First Trust ISE Global Wind Energy Index Fund, billed as the first wind energy exchange-traded fund, tomorrow on the NYSE Arca market
First Trust Advisors has announced plans to launch the First Trust ISE Global Wind Energy Index Fund, billed as the first wind energy exchange-traded fund, tomorrow on the NYSE Arca market. First Trust is the fund’s investment advisor.
‘First Trust is pleased to introduce an ETF product that focuses entirely on wind energy,’ says Robert Carey, chief investment officer of First Trust, for which the ISE Global Wind Energy Index Fund will be the 37th ETF.
‘We are watching the wind energy industry rapidly mature due to investment from around the globe. In 2007, companies involved in wind energy generation participated in growth of 27 per cent in installed global wind generation capacity, bringing the global total to more than 94,000 megawatts.
‘Industry experts predict continuing growth of wind generation capacity for a number of reasons, including concerns about supply security, rising fossil fuel costs and mitigation efforts related to environmental problems and climate change. First Trust sees acceleration in the building of global wind generation capacity as a strong signal that wind generation has become an important global growth industry.’
The ISE Global Wind Energy Index Fund will seek investment results corresponding generally to the price and yield of the ISE Global Wind Energy Index, a modified market capitalisation-weighted equity index consisting of companies worldwide active in the wind energy industry, based on an analysis of their products and services. To be eligible for inclusion, companies must have a market capitalisation of at least USD100m.
The ISE Global Wind Energy Index was developed by the International Securities Exchange in consultation with Standard & Poor’s. Index components are reviewed for eligibility and the index is rebalanced semi-annually according to the index methodology. The index is calculated and maintained by Standard & Poor’s.
Based in Lisle, Illinois, First Trust Advisors and its affiliate First Trust Portfolios are privately-held investment services companies which were established in 1991 and operate in the US, Canada and Europe, providing investment services including asset management and financial advisory services and with combined assets under management or supervision of more than USD34bn at the end of May in closed-end funds, unit investment trusts, separate managed accounts and ETFs.