First Trust launches distributing share class for eurozone AlphaDEX ETF on LSE

Aug 24th, 2018 | By | Category: Equities

First Trust has launched a distributing share class of the First Trust Eurozone AlphaDEX UCITS ETF on London Stock Exchange.

First Trust launches distributing share class of eurozone AlphaDEX ETF on LSE

The ETF provides smart beta exposure to eurozone equities, targeting both growth and value factors.

The new share class trades in pound sterling under the ticker FEUD LN.

Income generated within the portfolio will be distributed to investors on a quarterly schedule.

FEUZ tracks the Nasdaq AlphaDEX Eurozone Index, a smart beta index that selects companies based on value factors, such as price-to-book ratio, price-to-cash flow ratio, and return on capital, and growth factors such as momentum, revenue growth and price-to-sales ratio.

The top 150 stocks, ranked according to a combined score across all value and growth factors, are selected for inclusion in the index. A modified equal-weighting scheme is used to prevent over concentration in individual firms while tilting in favour of companies with a high AlphaDEX factor score.

Country and sector weighting constraints are also applied to further enhance diversification. The index is reconstituted and rebalanced semi-annually.

While actual distribution rates may vary, the index yield, as represented by the weighted average trailing 12-month dividend of the constituents, was 2.97% as of 31st July 2018, suggesting that income-seeking investors will receive a an attractive level of dividends.

The original accumulating share class was launched in October 2014. It is available to trade on LSE in pounds sterling (FEUZ LN) or US dollars (FTEU LN), in euros on Euronext Amsterdam (FEUZ NA), and in Swiss francs on SIX Swiss Exchange (FEUZ LN).

The ETF comes with a total expense ratio (TER) of 0.65% and has approximately £320 million in assets under management.

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