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First Trust plans launch of emerging, developed markets AlphaDEX funds
By Toni Weeks
San Diego, Jan. 17 - First Trust Exchange-Traded Alphadex Fund II announced in an N-1A filing with the Securities and Exchange Commission that it plans to launch two new funds, the First Trust Emerging Markets Small Cap AlphaDEX Fund and the First Trust Developed Markets ex-U.S. Small Cap AlphaDEX Fund.
Both funds will trade on the NYSE Arca. Ticker symbols have not yet been determined.
Unlike mutual funds, each fund will issue and redeem shares on a continuous basis at its net asset value in large blocks, each block, or "creation unit," consisting of 50,000 shares. Each fund's creation units are issued and redeemed principally in-kind.
The Emerging Markets Small Cap fund will seek investment results that correspond generally to the price and yield, before fees and expenses, of the Defined Emerging Markets Small Cap Index.
The Developed Markets fund will seek investment results that correspond generally to the price and yield, before fees and expenses, of the Defined Developed Markets Small Cap Index.
Both funds will normally invest at least 90% of its net assets plus the amount of any borrowings for investment purposes in stocks and/or depositary receipts that comprise its respective index. First Trust will seek a correlation of 0.95 or better between the fund's performance and its index's performance, with 1.00 representing a perfect correlation.
The portfolio managers for both funds will be Daniel J. Lindquist, Robert F. Carey, Jon C. Erickson, David G. McGarel, Roger F. Testin and Stan Ueland.
The total annual fund operating expenses for each fund will be 0.8%, consisting solely of a management fee. There will be no shareholder fees.
Wheaton, Ill.-based First Trust Advisors LP is the investment adviser to the fund.
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