New ETF will Invest in a Diverse Set of Liquid, TSX listed ETFs
in a Risk Managed Framework
TORONTO,
July 23, 2014 /CNW/ - FT Portfolios
Canada Co. ("First Trust Canada"), a privately owned company
is pleased to announce the launch of the common and advisor
class of units of the First Trust Global Risk Managed Income Index
ETF (TSX: ETP/ETP.A).
The First Trust ETF seeks to replicate, to the
extent possible, the performance of the NASDAQ Global Risk Managed
Income IndexSM (the "Index"), net of expenses. The
investment strategy of the First Trust ETF is to invest in and hold
constituent securities of the Index in the same proportion as they
are reflected in the Index or securities intended to replicate the
performance of the Index. The Index seeks to provide a risk
managed, global income portfolio which generates a high yield for
the risk taken and consists of liquid income-bearing exchange
traded funds ("ETFs") and other exchange traded products across
various asset classes.
"We are pleased to partner with Nasdaq OMX and
Newfound Research LLC on a strategy which we believe provides a
compelling income solution for Canadian investors," said
Fraser Howell, chief executive
officer of FT Portfolios Canada Co. "In the current low yield
environment where many investors and advisors actively hunt for the
dual goals of income generation and risk mitigation, we feel our
new First Trust ETF (TSX:ETP) may provide the flexibility to
potentially achieve both objectives."
"The Canadian ETF market boasts over 300+ ETFs
which tap into everything from dividend paying equities to niche
bond markets such as convertible bonds and senior loans. We feel
the desire for a simplified, single ticker solution comprised of
some of the largest and most liquid income based ETFs in
Canada is a significant need
across many investor and advisor wish lists," added
Karl Cheong, senior vice president
of First Trust Canada.
"NASDAQ's suite of income indexes have long been
standard benchmarks and we are proud First Trust has launched a
product on one of the most innovative income indexes in the
market. NASDAQ's partnership with Newfound has resulted in an
expansion of income investing from the traditional to the
technical" said Dave Gedeon from
NASDAQ.
About First Trust
The First Trust companies are a well-respected
global enterprise with a history in the U.S. market since 1991 and
in Canada since 1996. As at
June 30, 2014, First Trust
Advisors L.P., the portfolio advisor for the First Trust Global
Risk Managed Income Index ETF, oversee more than US$98 billion total assets under supervision or
management. First Trust is the enterprise name used for the
various businesses conducted in Europe, Mexico, Canada and the U.S.
Further information about First Trust Canada's
ETFs can be found at www.firsttrust.ca
Commissions, management fees and expenses all
may be associated with investments in exchange traded funds. Please
read the prospectus before investing. Exchange traded funds are not
guaranteed, their values change frequently and past performance may
not be repeated.
NASDAQ®, OMX®, NASDAQ OMX®, NASDAQ Global Risk
Managed Income IndexSM are registered trademarks or
service marks of The NASDAQ OMX Group, Inc. (which with its
affiliates is referred to as the "Corporations") or Newfound
Research LLC ("Newfound"), and are licensed for use by FT
Portfolios Canada Co. Units of the First Trust ETF (the
"Products") have not been passed on by the Corporations or Newfound
as to their legality or suitability. The Products are not
issued, endorsed, sold, or promoted by the Corporations or
Newfound. Neither the Corporations nor Newfound make any
warranties and bear no liability with respect to the
Products.
SOURCE FT Portfolios Canada Co.