First Trust is coming out with two new exchange traded funds (ETFs) that are scheduled to launch Aug. 30th: the First Trust DJ STOXX Select Dividend 30 Index Fund (FDD) and the First Trust FTSE EPRA/NARIET Global Real Estate Index Fund (FRR).
FDD will track the Dow Jones STOXX Select Dividend 30 Index, which weighs companies in it by their dividends. It comprises 30 high-dividend yielding stocks across 18 European countries. FDD’s net expense ratio is 0.6%. Top holdings include Lloyds TSB Group at 5.8%, Vodafone Group at 5.5% and United Utilities at 5.3%. Financials make up the most of FDD at 38.5%, followed by telecommunication services at 23.0% and utilities at 12.2%.
FRR will track the FTSE EPRA/NAREIT Global Real Estate Index that is designed to measure the stock performance of real estate-based companies in North America, Europe and Asia. The index holds stocks based on market capitalization, and it is rebalanced and reconstituted quarterly. FFR’s net expense ratio is 0.6%. Top holdings include Westfield Group Australia at 3.4%, Mitsubishi Estate at 3.2% and Mitsui Fudosan at 2.8%. The U.S. has the largest weighting in FRR at 37.9%, followed by Japan at 12.7% and Australia at 12.0%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.