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:
First Trust Nasdaq Bank ETF (NASDAQ: FTXO).
First Trust Nasdaq Food & Beverage ETF (NASDAQ: FTXG).
First Trust Nasdaq Oil & Gas ETF (NASDAQ:
FTXN).
First Trust Nasdaq Pharmaceuticals ETF (NASDAQ: FTXH).
First Trust Nasdaq Retail ETF
(NASDAQ: FTXD).
First Trust Nasdaq Semiconductor ETF (NASDAQ: FTXL).
First Trust Nasdaq Transportation
ETF (NASDAQ: FTXR).
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.
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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
(NYSE: SYY), Best Buy Co Inc (NYSE: BBY) and Target Corporation (NYSE: 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. (NYSE: PEP) and
The Coca-Cola Co (NYSE: 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 (NYSE: LLY),
Johnson & Johnson (NYSE: JNJ) and
AbbVie Inc (NYSE: 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 (NASDAQ: INTC) and Applied Materials, Inc. (NASDAQ: AMAT).
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Adds To ETF Stable With 2 Unique Commodities Funds
The First Trust Nasdaq Oil & Gas ETF tracks the Nasdaq US Smart Oil & Gas Index. FXTN features Chevron
Corporation (NYSE: CVX) and Exxon Mobil
Corporation (NYSE: 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. (NYSE: STI) and
JPMorgan Chase & Co. (NYSE: 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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