First Trust unveils three new thematic equity ETFs

Jan 26th, 2022 | By | Category: Equities

First Trust has launched a trio of new thematic global equity ETFs in the US.

Ryan Issakainen, Senior Vice President, ETF Strategist at First Trust.

Ryan Issakainen, Senior Vice President, ETF Strategist at First Trust.

Aligned with digitalization and enhanced mobility investment megatrends, they are the First Trust S-Network Streaming & Gaming ETF (BNGE US), First Trust S-Network E-Commerce ETF (ISHP US), and First Trust S-Network Future Vehicles & Technology ETF (CARZ US).

The funds are linked to indices from Alerian S-Network Global Indexes.

Ryan Issakainen, Senior Vice President, ETF Strategist at First Trust, said: “As a leading provider of thematic ETFs, we believe these funds provide compelling tools for investment professionals to gain exposure to investment trends in specialized industries. In our view, many of these technologies are just getting started. As they mature, and as the next generation of consumers gains more buying power, we believe these trends may accelerate.”

Robert Hughes, Chief Commercial Officer of Alerian and S-Network Global Indexes, added: “As consumer trends, behaviors and needs continue to evolve at a rapid pace, new index-based tools are needed to track the growth and development of companies that do not neatly fit into traditional sector classifications. We are excited to work with First Trust to introduce solutions that provide the marketplace with greater insights into unique companies offering emerging technologies, products, and services.”

The Funds

The First Trust S-Network Streaming & Gaming ETF tracks the S-Network Streaming & Gaming Index which consists of firms operating in three online entertainment segments: content streaming, e-Sports, and iGaming. The index selects the largest 15 eleigible companies and weights them by market capitalization.

The fund has been listed on NYSE Arca with an expense ratio of 0.70%.

The First Trust S-Network E-Commerce ETF, meanwhile, tracks the S-Network Global E-Commerce Index which provides exposure to the 15 largest companies deriving significant revenue from online retail, online marketplaces, content navigation, and e-commerce infrastructure business segments. Constituents are also weighted by market capitalization.

The fund has been listed on Nasdaq with an expense ratio of 0.60%.

Finally, the First Trust S-Network Future Vehicles & Technology ETF follows the S-Network Electric & Future Vehicle Ecosystem Index which screens for companies with at least 50% assets or revenues exposure to electric and autonomous vehicle manufacturing, EV and AV enabling technologies, EV and AV enabling materials, and automotive technology and products. The index selects all eligible stocks with market capitalizations greater than $500m. Constituents are weighted by market capitalization subject to a single stock cap of 4.5%.

The fund has also been listed on Nasdaq and has an expense ratio of 0.70%.

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