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First Trust Global Risk to start trading on TSX today

2014-07-23 07:29 ET - News Release

Mr. Fraser Howell reports

FIRST TRUST LAUNCHES GLOBAL RISK MANAGED INCOME INDEX ETF

FT Portfolios Canada Co. has launched the common and adviser class of units of the First Trust Global Risk Managed Income Index ETF. The First Trust ETF seeks to replicate, to the extent possible, the performance of the Nasdaq Global Risk Managed Income 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 that generates a high yield for the risk taken and consists of liquid income-bearing exchange-traded funds 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. "In the current low-yield environment where many investors and advisers actively hunt for the dual goals of income generation and risk mitigation, we feel our new First Trust ETF may provide the flexibility to potentially achieve both objectives."

"The Canadian ETF market boasts over 300-plus 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 adviser 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.

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