First Trust has added three ETFs to its lineup of ETFs that are
cross-listed on the Bolsa Mexicana de Valores
First
Trust Advisors L.P. (“First Trust”) a global exchange-traded fund
(ETF) provider and asset manager, today announced that it has
cross-listed the First Trust NASDAQ® ABA Community Bank Index
Fund (Ticker: QABA), the First Trust NASDAQ®
Clean Edge® Green Energy Index Fund (Ticker: QCLN) and the
First Trust Nasdaq Cybersecurity ETF (Ticker: CIBR) on the Bolsa
Mexicana de Valores (BMV).
As many institutional investors seek to invest more broadly outside of
Mexico, First Trust is pleased to expand its offerings of cross-listed
ETFs. These ETFs present an opportunity for Mexican investors to access
niche sectors of the economy while diversifying risk with a product that
generally involves lower costs than traditional mutual funds.
First Trust first entered the Mexican market in 2011. “Mexico is a key
market for First Trust and one of our fastest growing countries by asset
growth in Latin America,” said Codie Sanchez Baker, Head of First Trust
Latin America Investment Distribution. “Our hope is to continue to
provide innovative and relevant solutions such as these newly
cross-listed ETFs for our investors and clients.” These three funds
increase the number of First Trust ETFs cross-listed on the BMV to 45.
For more information about First Trust, please contact Ryan Issakainen
of First Trust at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust Advisors L.P., along with its affiliate First Trust
Portfolios L.P., are privately held companies which provide a variety of
investment services, including asset management and financial advisory
services, with collective assets under management or supervision of
approximately $96.10 billion as of March 31, 2016 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual funds
and separate managed accounts. First Trust is based in Wheaton,
Illinois. For more information, visit http://www.ftlatinamerica.com.
You should consider a fund’s investment objectives, risks, and
charges and expenses carefully before investing. Contact First Trust
Portfolios L.P. at 1-800-621-1675 or visit www.ftlatinamerica.com
to obtain a prospectus which contains this and other information about a
fund. The prospectus should be read carefully before investing.
ETF Characteristics
The funds list and principally trade their shares on The Nasdaq Stock
Market LLC and the Bolsa Mexicana de Valores.
A fund’s return may not match the return of its underlying index.
Securities held by the funds will generally not be bought or sold in
response to market fluctuations.
Investors buying or selling fund shares on the secondary market may
incur customary brokerage commissions. Market prices may differ to some
degree from the net asset value of the shares. Investors who sell fund
shares may receive less than the share’s net asset value. Shares may be
sold throughout the day on the exchange through any brokerage account.
However, unlike mutual funds, shares may only be redeemed directly from
the fund by authorized participants, in very large creation/redemption
units.
Risks
A fund’s shares will change in value, and you could lose money by
investing in a fund. One of the principal risks of investing in a fund
is market risk. Market risk is the risk that a particular security owned
by a fund, fund shares or securities in general may fall in value. There
can be no assurance that a fund’s investment objective will be achieved.
A fund may invest in securities issued by companies concentrated in a
particular industry, sector or country. A fund may invest in small
capitalization and mid-capitalization companies. Such companies may
experience greater price volatility than larger, more established
companies.
An investment in a fund containing securities of non-U.S. issuers is
subject to additional risks, including currency fluctuations, political
risks, withholding, the lack of adequate financial information, and
exchange control restrictions impacting non-U.S. issuers. These risks
may be heightened for securities of companies located in, or with
significant operations in, emerging market countries. A fund may invest
in depositary receipts which may be less liquid than the underlying
shares in their primary trading market.
Community banks were significantly impacted by the decline in the
subprime mortgage lending market in the U.S. which brought about
legislative and regulatory changes, changes in short-term and long-term
interest rates, inflation and changes in government monetary and fiscal
policies. Unlike larger national or other regional banks that are more
geographically diversified, a community bank’s financial performance may
be highly dependent upon the business environment in certain geographic
regions of the U.S. and may be adversely impacted by any downturn or
unfavorable economic or employment developments in its local market and
the U.S. as a whole.
Renewable and alternative energy companies can be significantly affected
by obsolescence of existing technology, short product cycles,
legislation resulting in more strict government regulations and
enforcement policies, fluctuations in energy prices and supply and
demand of alternative energy fuels, energy conservation, the success of
exploration projects, the supply of and demand for oil and gas, world
events and economic conditions. Shares of clean energy companies have
been significantly more volatile than shares of companies operating in
other more established industries. This industry is relatively nascent
and under-researched in comparison to more established and mature
sectors.
Information technology companies and cybersecurity companies are
generally subject to the risks of rapidly changing technologies, short
product life cycles, fierce competition, aggressive pricing and reduced
profit margins, loss of patent, copyright and trademark protections,
cyclical market patterns, evolving industry standards and frequent new
product introductions. Cybersecurity companies may also be smaller and
less experienced companies, with limited product lines, markets,
qualified personnel or financial resources.
Industrials companies are subject to certain risks, including the
general state of the economy, intense competition, consolidation,
domestic and international politics, excess capacity and consumer demand
and spending trends. In addition, they may also be significantly
affected by overall capital spending levels, economic cycles, technical
obsolescence, delays in modernization, labor relations, government
regulations and e-commerce initiatives.
CIBR currently has fewer assets than larger funds, and like other
relatively new funds, large inflows and outflows may impact the fund’s
market exposure for limited periods of time.
The funds are classified as “non-diversified” and may invest a
relatively high percentage of their assets in a limited number of
issuers. As a result, the funds may be more susceptible to a single
adverse economic or regulatory occurrence affecting one or more of these
issuers, experience increased volatility and be highly concentrated in
certain issuers.
First Trust Advisors L.P. is the adviser to the funds. First Trust
Advisors L.P. is an affiliate of First Trust Portfolios L.P., the funds’
distributor.
The views and opinions expressed are for informational purposes
only. This material is not intended to be relied upon as investment
advice or recommendations, does not constitute a solicitation to buy or
sell securities (in any jurisdiction to any person to whom it is not
lawful to make such an offer) and should not be considered specific
legal, investment or tax advice.
For Investors in Mexico:
The funds have been cross-listed on the Bolsa Mexicana de Valores.
Investors should review all relevant offering materials, including all
applicable risk factors, and should consult with financial and tax
advisors relating to tax and other consequences of investing in a
particular security prior to making an investment. None of the
securities herein have been registered with the National Securities
Registry (Registro Nacional de Valores) maintained by the Mexican
National Banking and Securities Commission (Comisión Nacional Bancaria y
de Valores). Securities not cross-listed on the Bolsa Mexicana de
Valores nor registered with the National Securities Registry (Registro
Nacional de Valores) may not be offered or sold publicly or otherwise be
the subject of brokerage activities in Mexico, except pursuant to the
private placement exemption set forth in article 8 of the Securities
Market Law (Ley del Mercado de Valores), to institutional and qualified
investors, as defined under Mexican law and rules thereunder.
Nasdaq®, Consumer Technology Association, and Nasdaq CTA Cybersecurity
IndexSM are registered trademarks of Nasdaq, Inc. and
Consumer Technology Association, (which with its affiliates is referred
to as the “Corporations”) and are licensed for use by First Trust
Advisors L.P. The fund has not been passed on by the Corporations as to
its legality or suitability. The fund is not issued, endorsed, sold, or
promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND
BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Nasdaq® and NASDAQ OMX® ABA Community Bank Index℠ are trademarks of
Nasdaq, Inc. and American Bankers Association, (Nasdaq and ABA,
collectively with their affiliates, are referred to as the
"Corporations") and are licensed for use by First Trust Advisors L.P.
The fund has not been passed on by the Corporations as to its legality
or suitability. The fund is not issued, endorsed, sold, or promoted by
the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO
LIABILITY WITH RESPECT TO THE FUND.
Nasdaq and Clean Edge are registered trademarks (the “Marks”) of Nasdaq,
Inc. (“Nasdaq”) and Clean Edge, Inc. (“Clean Edge”) respectively. Nasdaq
and Clean Edge are, collectively with their affiliates, the
“Corporations.” The Marks are licensed for use by First Trust Advisors
L.P. The Fund has not been passed on by the Corporations as to its
legality or suitability. The Fund is not issued, endorsed, sold or
promoted by the Corporations. The Fund should not be construed in any
way as investment advice by the Corporations. THE CORPORATIONS MAKE
NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
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