First Trust lists Eurozone AlphaDEX ETF on Borsa Italiana

Oct 4th, 2018 | By | Category: Equities

First Trust has cross-listed its First Trust Eurozone AlphaDEX UCITS ETF on Borsa Italiana.

First Trust brings its Eurozone AlphaDEX ETF to Borsa Italiana

The First Trust Eurozone AlphaDEX UCITS ETF is now available to trade on Borsa Italiana in euros.

The ETF, which provides smart beta exposure to eurozone stocks with growth and value characteristics, is available to trade in euros on the exchange under the ticker FEUZ IM.

FEUZ tracks the NASDAQ AlphaDEX Eurozone Index which selects companies based on value factors such as price-to-book ratio, price-to-cash flow ratio, and return on capital; and on 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.

The fund has a total expense ratio (TER) of 0.65%. The new listing on Borsa Italiana reinvests any income within the fund’s portfolio.

The strategy is already available across several exchanges in Europe including London Stock Exchange in pounds sterling (FEUZ LN) and US dollars (FTEU LN), in euros on Euronext Amsterdam (FEUZ NA), and in Swiss francs on SIX Swiss Exchange (FEUZ LN).

First Trust also recently unveiled an income distributing share class for the fund which trades in pound sterling on LSE under the ticker FEUD LN.

The ETF has sparked interest from investors lately. Having initially launched in October 2014, the fund reached €100 million in assets in November 2017 and has seen its AUM shoot up to over €380m, as of 4 October 2018.

The growth in investor demand is likely due to a combination of the fund simultaneously crossing its three-year trading anniversary and the €100m milestone, as well as being awarded a coveted five-star Morningstar Rating based on a risk- and cost-adjusted analysis of fund performance compared to similar eurozone large-cap equity funds.

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