An index-tracking ETF that focuses on high
dividend-paying stocks based outside the U.S.
First Trust Advisors L.P. (“First Trust”), a leading
exchange-traded fund (“ETF”) provider and asset manager, announced
today that the First Trust S&P International Dividend
Aristocrats ETF (the “fund”) began trading on The Nasdaq Stock
Market LLC under the ticker symbol FID. The fund seeks investment
results that correspond generally to the price and yield (before
the fund’s fees and expenses) of the S&P International Dividend
Aristocrats Index (the “index”). The index is designed to measure
the performance of high dividend-yielding, non-U.S. companies that
have followed a managed-dividends policy of increasing or
maintaining dividends for at least 10 consecutive years.
Investing internationally in high quality, dividend-paying
companies may provide gains when domestic markets are flat or
declining, as global markets often follow different cycles than the
U.S. markets. Every security selected for the index must meet
stringent eligibility criteria based on historical dividend
increases, dividend yield and payout ratio. “In our opinion,
dividends are often a sign of strong corporate health, and dividend
increases may signal growing confidence from management. While many
dividend ETFs focus on domestic stocks, we believe strong dividend
policies are also important for international stocks. This ETF
seeks to provide exposure to international stocks that may be
well-positioned for dividend growth,” said Ryan Issakainen, CFA,
Senior Vice President, ETF Strategist at First Trust. A company’s
ability to reliably increase its dividend may be attractive to
investors looking for companies that have the potential to endure
difficult market and economic environments.
“Since its 2005 inception, the S&P Dividend Aristocrats
index family has been one of the leading families of indices in the
areas of dividend growth and providing exposure to dividend payers
in many markets,” said Joe Kairen, Senior Director, S&P Dow
Jones Indices. “We are delighted to extend the S&P Dividend
Aristocrats index-based concept to the international, global ex.
U.S. markets to measure the companies abroad that have consistently
increased or maintained their dividends over a period of 10
years.”
Prior to August 30, 2018, the fund’s investment objective was to
seek to track the NASDAQ International Multi-Asset Diversified
Income Index. The fund, formerly known as International Multi-Asset
Diversified Income Index Fund, previously traded under the ticker
symbol YDIV.
For more information about First Trust, please contact Ryan
Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust is a federally registered investment advisor and
serves as the fund’s investment advisor. First Trust and its
affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered
broker-dealer, are privately held companies that provide a variety
of investment services. First Trust has collective assets under
management or supervsion of approximately $130 billion as of July
31, 2018 through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts. First
Trust is the supervisor of the First Trust unit investment trusts,
while FTP is the sponsor. FTP is also a distributor of mutual fund
shares and exchange-traded fund creation units. First Trust and FTP
are based in Wheaton, Illinois. For more information, visit
http://www.ftportfolios.com.
You should consider the fund’s investment objectives, risks,
and charges and expenses carefully before investing. Contact First
Trust Portfolios L.P. at 1-800-621-1675 or visit
www.ftportfolios.com to obtain a prospectus or summary
prospectus which contains this and other information about the
fund. The prospectus or summary prospectus should be read carefully
before investing.
ETF Characteristics
The fund lists and principally trades its shares on The Nasdaq
Stock Market LLC.
The fund's return may not match the return of the S&P
International Dividend Aristocrats Index. Securities held by the
fund will generally not be bought or sold in response to market
fluctuations.
Investors buying or selling fund shares on the secondary market
may incur customary brokerage commissions. Market prices may differ
to some degree from the net asset value of the shares. Investors
who sell fund shares may receive less than the share's net asset
value. Shares may be sold throughout the day on the exchange
through any brokerage account. However, unlike mutual funds, shares
may only be redeemed directly from the fund by authorized
participants, in very large creation/redemption units. If the
fund's authorized participants are unable to proceed with
creation/redemption orders and no other authorized participant is
able to step forward to create or redeem, fund shares may trade at
a discount to the fund's net asset value and possibly face
delisting.
Risk Considerations
The fund's shares will change in value, and you could lose money
by investing in the fund. One of the principal risks of investing
in the fund is market risk. Market risk is the risk that a
particular stock owned by the fund, fund shares or stocks in
general may fall in value. There can be no assurance that the
fund's investment objective will be achieved.
The fund is not actively managed and generally will not attempt
to take defensive positions in declining markets.
The fund currently has fewer assets than larger funds, and like
other relatively new funds, large inflows and outflows may impact
the fund’s market exposure for limited periods of time.
The fund may invest in securities issued by companies
concentrated in a particular industry or sector, which involves
additional risks, including limited diversification. The fund may
invest in small capitalization and mid capitalization companies.
Such companies may experience greater price volatility than larger,
more established companies.
An investment in a fund containing securities of non-U.S.
issuers is subject to additional risks, including currency
fluctuations, political risks, withholding, the lack of adequate
financial information, and exchange control restrictions impacting
non-U.S. issuers. These risks may be heightened for securities of
companies located in, or with significant operations in, emerging
market countries. The fund may invest in depositary receipts which
may be less liquid than the underlying shares in their primary
trading market.
The fund may hold investments that are denominated in non-U.S.
currencies, or in securities that provide exposure to such
currencies, currency exchange rates or interest rates denominated
in such currencies. Changes in currency exchange rates and the
relative value of non-U.S. currencies will affect the value of the
fund's investment and the value of fund shares.
There is no guarantee that the issuers of the securities in the
portfolio will declare dividends in the future or that, if
declared, they will either remain at current levels or increase
over time.
As the use of Internet technology has become more prevalent in
the course of business, the fund has become more susceptible to
potential operational risks through breaches in cyber security.
First Trust Advisors L.P. is the adviser to the fund. First
Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P.,
the fund's distributor.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA
and the Internal Revenue Code. First Trust has no knowledge of and
has not been provided any information regarding any investor.
Financial advisors must determine whether particular investments
are appropriate for their clients. First Trust believes the
financial advisor is a fiduciary, is capable of evaluating
investment risks independently and is responsible for exercising
independent judgment with respect to its retirement plan
clients.
Standard & Poor's® and S&P® are registered trademarks of
Standard & Poor's Financial Services LLC ("S&P") and have
been licensed for use by First Trust Advisors L.P. The First Trust
S&P International Dividend Aristocrats ETF is not sponsored,
endorsed, sold or promoted by S&P or its affiliates, and
S&P and its affiliates make no representation, warranty or
condition regarding the advisability of buying, selling or holding
shares of the First Trust S&P International Dividend
Aristocrats ETF.
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version on businesswire.com: https://www.businesswire.com/news/home/20180830005468/en/
First TrustRyan Issakainen(630)
765-8689RIssakainen@FTAdvisors.com
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