First Trust to upgrade smartphone ETF

Mar 12th, 2019 | By | Category: Equities

First Trust has announced upcoming changes to the First Trust Nasdaq Smartphone Index Fund (FONE US) including a new index, ticker, and name.

First Trust Smartphone 5G ETF

The First Trust Nasdaq Smartphone Index Fund will begin tracking a new index from 29 May 2019.

Around 29 May 2019, the ETF will switch from tracking the Nasdaq CTA Smartphone Index to the Indxx 5G & NextG Thematic Index.

The current index targets companies globally that have a minimum market capitalization of $250 million and are engaged in the smartphone segment of the telecom and technology sectors.

To be eligible for the index, firms must be classified as a smartphone company as determined by the Consumer Technology Association.

The new index will be similar to its predecessor but will tilt towards companies providing 5G technology. 5G – from Fifth Generation – refers to the latest generation of cellular mobile communications.

Its adoption should provide faster speeds, more functionality, and lower latency, helping to transform work practices and daily life.

Widespread 5G connectivity has the potential to make information universally accessible, foster a digitalized sharing economy, transform diverse industries, and enhance people’s quality of life. The impact of 5G is expected to be felt across many spheres such as smart cars, VR/AR functions, manufacturing, healthcare, and the internet of things.

To reflect the change in index, the fund will be renamed First Trust Indxx NextG ETF and will trade under the ticker NXTG US. It will continue to be listed on Nasdaq Exchange and maintains its expense ratio of 0.70%.

The fund has approximately $15 million in assets under management.

Recently, Defiance ETFs launched the first ETF to directly target companies related to the theme of 5G technology – the Defiance Next Gen Connectivity ETF (FIVG US). This fund tracks the BlueStar 5G Communications Index which consists of US-listed equities as well as American Depositary Receipts of companies from various segments of the 5G technology ecosystem. Its expense ratio is 0.30%.

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