First Trust, the sixth-largest U.S. issuer of exchange trade funds, plans to further expand its lineup with the introduction of up to three new ETFs this week.
All of the new First Trust ETFs could debut on Wednesday Nov. 5, including the international complement to the popular First Trust US IPO Index Fund (NYSEArca: FPX). The First Trust International IPO ETF will trade on the NASDAQ under the ticker “FPXI.” FPXI was scheduled to launch last month. [New ETFs Coming From First Trust]
FPXI has a competitor in the form of the Renaissance International IPO ETF (NYSEArca: IPOS), which debuted last month.
Illinois-based First Trust could also introduce the First Trust Emerging Markets Local Currency Bond ETF (NasdaqGM: FEMB) and the First Trust Low Duration Mortgage Opportunities ETF (NasdaqGM: LMBS) on Wednesday.
Both of those ETFs will join First Trust’s growing stable of actively managed ETFs. The firm currenty sponsors 12 actively managed ETFs, including successful products such as the $196 million First Trust Senior Loan ETF (NasdaqGS: FTSL), the $505.8 million First Trust Enhanced Short Maturity Fund (NasdaqGS: FTSM) and the $941.5 million First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP).
“The First Trust Emerging Markets Local Currency Bond ETF seeks maximum total return and current income. The fund invests in bonds, notes and bills issued or guaranteed by entities in emerging market (EM) countries that are denominated in the issuer’s local currency. The risk/return profile of EM local currency bonds is driven mainly by two components, local interest rates and foreign exchange (FX) fluctuations, which can be a significant driver of performance, either positive or negative,” according to a statement issued by First Trust.
That new ETF will compete with well-established rivals, such as the actively managed WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD) and the passively managed Market Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC).
“The First Trust Low Duration Mortgage Opportunities ETF primarily seeks to generate current income with a secondary objective of capital appreciation,” according to First Trust.
First Trust has been one of the most prolific and successful issuers of new ETFs this year with 12 new product launches. [Another Good Year for New ETFs]
ETF Trends editorial team contributed to this post.