First Trust launched three new currency hedged international exchange-traded funds on Thursday.
The trio – First Trust RiverFront Dynamic Europe ETF (Nasdaq: RFEU), First Trust RiverFront Dynamic Asia Pacific ETF (Nasdaq: RFAP), and First Trust RiverFront Dynamic Developed International ETF (Nasdaq: RFDI) – will seek to provide capital appreciation through exposure to global economies and the opportunities they represent.
The ETFs are actively managed by RiverFront Investment Group, LLC using their proprietary methodology, which employs a quantitative and qualitative ranking system based on factors that include value, quality and momentum.
This is combined with RiverFront’s optimization process and detailed analysis. Currency hedging and risk management are also integral parts of the active management of these ETFs.
RFAP has an investment objective is to provide capital appreciation. Under normal market conditions, it will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of Asian Pacific companies, including through investments in common stock, depositary receipts and real estate investment trusts, and forward foreign currency exchange contracts.
Meanwhile, RFDI has an investment objective is to provide capital appreciation. Under normal market conditions, it will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of developed market companies, including through investments in common stock, depositary receipts and real estate investment trusts, and forward foreign currency exchange contracts.
[related_stories]Finally, RFEU has an investment objective is to provide capital appreciation. Under normal market conditions, it will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of European companies, including through investments in common stock, depositary receipts and real estate investment trusts, and forward foreign currency exchange contracts.
Michael Jones, Chairman and Chief Investment Officer of RiverFront, said active management is essential in today’s fast-moving markets.
“These ETFs are unique to the marketplace in that they offer active management of the underlying equity portfolio and a dynamic approach to currency hedging, all within the structure of an ETF,” Jones said.
Chris Konstantinos, RiverFront’s Director of International Portfolio Management, said recent market volatility has provided “an opportune time to launch these ETFs.”
“We believe stocks across the developed world have pulled back to attractive valuations and that investors have underestimated the positive impact that lower oil prices and continued aggressive monetary policy will have on developed international economies,” Konstantinos said.