First Trust launches Canada's first European ETF
FT Portfolios Canada has launched the common and advisor class of units of the First Trust AlphaDEX European Dividend Index ETF (CAD-Hedged).
The First Trust ETF seeks to replicate, to the extent possible, the performance of the AlphaDEX European Dividend Index, net of expenses.
The investment strategy of the First Trust ETF is to invest in and hold the constituent securities of the AlphaDEX European Dividend Index in the same proportion as they are reflected in the index or securities intended to replicate the performance of the index.
The First Trust ETF will generally seek to hedge substantially all of its US dollar, British pounds sterling, euros and Swiss francs currency exposure associated with its portfolio investments back to the Canadian dollar.
"First Trust Canada is pleased to offer Canadians the first European equity ETF to be listed on the TSX,” says Fraser Howell, CEO and president of FT Portfolios Canada. “Europe is home to some of the most iconic and recognisable global brands in the world and despite the recent recession, dozens of best-in-class companies in Europe have done well and could continue to do well.”
“Relative to the US, European stocks are trading at very attractive valuations based on low price to book ratios and high dividend yields," says Karl Cheong, senior vice president head of ETF product development. "European corporate earnings are still 35 per cent below peak levels obtained in 2007, so there is significant potential for them to grow.”
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