Actively Managed Strategy That Invests in Short-Duration Securities (image: Kobizmedia/Korea Bizwire)
NEW YORK, Aug. 5, 2014 (Korea Bizwire) – NASDAQ OMX today announced that First Trust will launch a new exchange traded fund (ETF), First Trust Enhanced Short Maturity ETF (Symbol: FTSM), which will be listed on The NASDAQ Stock Market(R) (NASDAQ(R)). FTSM will begin trading on NASDAQ on Wednesday, August 6, 2014.
“Over the past few years, in this low interest rate environment, investors in short-term bonds have often been faced with a choice between losing purchasing power safely in high quality bonds with negative real returns, or seeking higher returns from securities that are below investment-grade,” said Ryan Issakainen, Senior Vices President and ETF Strategist at First Trust. “The idea behind this actively managed ETF is to provide a middle ground by investing in a diversified portfolio of primarily investment-grade, short-duration securities that may offer a higher level of income, while still focusing on capital preservation and daily liquidity.”
FTSM is an actively managed ETF that seeks to provide current income, consistent with preservation of capital and daily liquidity. FTSM uses an actively managed strategy that invests in short-duration securities, which are primarily U.S. dollar denominated, investment-grade securities. The fund will be invested across a broad range of asset classes to maintain diversification and at least 80% of the fund’s assets will be investment-grade securities. FTSM seeks to achieve its objectives by strategically laddering highly liquid investments over the near-term horizon. As market conditions change, the portfolio managers have the flexibility to strategically rotate among various market sectors while maintaining a focus on preservation of capital and liquidity.
“We are thrilled to list another innovative First Trust exchange traded product on NASDAQ,” said Dave LaValle, Head of Exchange Traded Product Listings at NASDAQ OMX. “We value our position as First Trust’s listing venue partner for the First Trust Enhanced Short Maturity ETF and will continue to support First Trust as they expand their robust product offering.”
NASDAQ OMX 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 OMX 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 $98 billion as of June 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.
About NASDAQ OMX:
NASDAQ OMX (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 OMX 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 OMX is home to more than 3,400 listed companies with a market value of over $8.5 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaqomx.com.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX and its products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX’s control. These factors include, but are not limited to factors detailed in NASDAQ OMX’s annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
The First Trust Enhanced Short Maturity ETF has not been passed on by NASDAQ OMX as to its legality or suitability, and it is not issued or sold by NASDAQ OMX. NASDAQ OMX MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE FIRST TRUST ENHANCED SHORT MATURITY ETF.
Nothing contained herein should be construed as investment advice from NASDAQ OMX, either on behalf of a particular financial product or an overall investment strategy. NASDAQ OMX makes no recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Investors should undertake their own due diligence and carefully evaluate financial products before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
NDAQG
CONTACT: First Trust Media Contact:
Ryan Issakaninen
+1 (630) 765-8689
Rissakainen@ftadvisors.com
NASDAQ OMX Media Contact:
Alexa Sugrue
+1 (212) 231-5552
Alexa.Sugrue@NASDAQOMX.com
Source: The NASDAQ OMX Group, Inc. (via Globe Newswire)
