Two Actively Managed Funds Focused on Current Income Opportunities
NEW YORK, Nov. 5 (Korea Bizwire) — Nasdaq today announced that First Trust will list two new exchange-traded funds, First Trust Emerging Markets Local Currency Bond ETF (Symbol: FEMB) and First Trust Low Duration Mortgage Opportunities ETF (Symbol: LMBS), on The Nasdaq Stock Market. FEMB and LMBS will begin trading on Nasdaq today, November 5th, 2014.
“These funds provide a strategy for investors to gain exposure to two fixed income sectors in which we believe in-depth research and analysis, along with ongoing surveillance, can add significant value for investors,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. “Both funds may benefit from active portfolio management, which provides the flexibility to implement specific views, while targeting a more attractive tradeoff between risk and return.”
FEMB is an actively managed exchange-traded fund that primarily seeks maximum total return and current income, while minimizing volatility by actively managing currency exposure. The fund invests in bonds that are denominated in the issuer’s local currency as opposed to U.S. dollars. Emerging market economies make up more than half of the world’s gross domestic product based on purchasing power parity and many are expanding and issuing debt with attractive yields to help finance their growth infrastructures and businesses. Because emerging markets are generally not as stable as developed markets, their bonds typically offer higher yields compared to developed market bonds to compensate for higher risk. This feature is attractive in today’s world of historically low interest rates.
LMBS seeks to generate current income with a secondary objective of capital appreciation. Under normal market conditions, the fund will seek to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in investment-grade, mortgage-related debt securities and other mortgage-related instruments tied to residential and commercial mortgages. The fund offers an attractive level of current income with an effective duration target of three years or less, limited interest rate sensitivity due to a focus on managing and limiting the average portfolio duration, opportunity to exploit inefficiencies in mortgage-related securities and the potential for capital appreciation over time.
“We are pleased to welcome First Trust’s two new exchange-traded funds to their robust product suite listed on The Nasdaq Stock Market,” said Walt Smith, Vice President, Head of U.S. Equities at Nasdaq. “Nasdaq offers First Trust a holistic approach to multiple business segments across asset classes and execution platforms globally.”
Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world’s most innovative ventures, Nasdaq generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.
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 $90 billion as of September 30, 2014 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.ftportfolios.com.
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or www.nasdaqomx.com.
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Source: NASDAQ OMX Group via GLOBE NEWSWIRE