FT Portfolios Canada Co., sponsor of the First Trust family of exchange-traded funds, today announced the launch of a suite of nine TSX-listed ETFs, each of which will focus on a specific sector of the U.S. stock market.
The new ETFs will seek to replicate, to the extent possible, the performance of a sector index that applies First Trust's proprietary AlphaDEX stock selection methodology to the relevant stocks included in the Russell 1000 Index (a market index representing the large capitalization segment of the U.S. equity universe).
The AlphaDEX methodology is a rules-based, fundamental stock selection process that seeks to produce similar correlation and risk characteristics as broad market indexes while seeking outperformance due to stock selection and weighting.
"These Canadian domiciled ETFs provide investors with exposure to the U.S. market without the complications of holding comparable U.S.-domiciled ETFs. More specifically, Canadian tax payers holding U.S.-domiciled ETFs may be subject to increasingly detailed reporting requirements by the Canada Revenue Agency as well as potential U.S. estate tax obligations," said Karl Cheong, senior vice president of First Trust Portfolios Canada, in a press release.
ETF | Symbol | Mgmt fee | |
First Trust AlphaDEX U.S. Energy Sector ETF | FHE | 0.70% | |
First Trust AlphaDEX U.S. Health Care Sector ETF | FHH | 0.70% | |
First Trust AlphaDEX U.S. Industrials Sector ETF | FHG | 0.70% | |
First Trust AlphaDEX U.S. Consumer Staples Sector ETF | FHC | 0.70% | |
First Trust AlphaDEX U.S. Financials Sector ETF | FHF | 0.70% | |
First Trust AlphaDEX U.S. Utilities Sector ETF | FHU | 0.70% | |
First Trust AlphaDEX U.S. Consumer Discretionary Sector ETF | FHD | 0.70% | |
First Trust AlphaDEX U.S. Materials Sector ETF | FHM | 0.70% | |
First Trust AlphaDEX U.S. Technology Sector ETF | FHQ | 0.70% | |
Source: FT Portfolios Canada Co. |