Exchange traded fund providers are expanding their lineups both in the U.S. and abroad. For instance, First Trust is planning its first foray into the European ETF market with three “smart beta” ETFs.
First Trust, the 11th largest U.S. ETF sponsor with $67.8 billion in assets under management, plans to offer three AlphaDEX ETFs that utilize alternative weighting styles based on growth and value scores, reports Chris Flood for Financial Times. The three funds are expected to come with a 0.85% exepsne ratio. [First Trust Lists Active ETF for Income]
First Trust has partnered with LGBR Capital to distribute the ETFs in Europe.
The line of AlphaDEX ETFs is part of a growing segment of rules-based strategies that offer actively managed investment methodologies in a passive index in an attempt to outuperform traditional market-capitalization weighted indices.