First Trust Global Portfolios, the UK based affiliate of First Trust Advisors LP and First Trust Portfolios LP has launched a UCITS ETF – The First Trust Dow Jones Internet UCITS ETF.
The firm writes that the Dow Jones Internet Composite Index is designed to measure the performance of the 40 largest and most actively traded stocks of US companies in the Internet sectors. The Fund seeks investment results that correspond generally to the price and yield before fees and expenses, of the Index.
The Index is designed to include only companies whose primary focus is internet-related. To be eligible for inclusion to the universe, a company must generate at least 50 per cent of its sales/revenues from internet commerce or services. The Fund will normally invest at least 90 per cent of its net assets (including investment borrowings) in common stocks that comprise the Index.
To be included in the Fund, a stock must have a minimum of three months’ trading history and a three month average float-adjusted market cap of at least USD100 million. The Fund also offers exposure to the four mega-cap FANG stocks and enables investors to remain diversified to other internet revenue generating companies within the universe. Utilizing access to these stocks via a UCITS collective investment scheme can offer potential cost efficiencies.
Derek Fulton, CEO at First Trust Global Portfolios says: “We are continuing to witness exponential global growth in internet usage. This new, highly liquid ETF provides exposure to this burgeoning asset class in a transparent UCITS structure. Tracking the Dow Jones Internet Composite Index, FDN offers exposure to FANG as well as driving alpha from other web-based companies.”
Fulton says: “We are pleased to be adding this product to our already robust line up of innovative factor-based ETFs. As internet exposure continues to grow and develop we believe there remains enormous potential upside in this space. Investors seeking exposure to this asset class may be best served by doing so in such a flexible, transparent and liquid UCITS ETF structure that FDN provides.”
The First Trust Dow Jones Internet UCITS ETF will begin trading on the London Stock exchange on 21st June 2018, with a TER of 0.55. First Trust Global Portfolios recently launched the Europe’s First Blockchain UCITS ETF, called the First Trust Indxx Innovative Transaction and Process UCITS ETF.
Last year also saw the launch of the Europe’s first actively managed currency exchange ETF– First Trust FactorFX UCITS ETF. This brought to market for the first time, First Trust’s experience in factor investing to the global fixed income sector.