First Trust Advisors L.P. (“First Trust”), a global ETF provider and asset manager, announced today that it has cross-listed the First Trust Capital Strength ETF (Ticker Symbol: FTCS) and the First Trust Indxx Innovative Transaction & Process ETF (Ticker Symbol: LEGR) on the Mexican stock exchange, Bolsa Mexicana de Valores (BMV).
First Trust entered the Mexican market in 2011. The additional listings brings the total number of domestic First Trust ETFs listed on the BMV to 53. “What a time it is to be in the world of investing,” said Codie Sanchez, Head of First Trust Latin America Investment Distribution. “We at First Trust are thrilled to have new options for our clients in Mexico; from an ETF that invests in global companies that are poised to potentially benefit from blockchain technologies (LEGR), to an ETF providing exposure to innovative American companies (FTCS). We hope to continue to bring cutting edge ideas to Mexican investors.”
For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust, a federally registered investment advisor, 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 is the investment advisor to exchange-traded funds, closed-end funds, mutual funds, separate managed accounts and provides supervisory services to FTP sponsored unit investment trusts. First Trust’s assets under management were approximately $123 billion as of April 30, 2018. This includes the supervisory services First Trust provides to FTP sponsored unit investment trusts, which are unmanaged. FTP is a sponsor of unit investment trusts and distributor of mutual fund shares and exchange-traded fund creation units. First Trust is based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.
You should consider each fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 to obtain a prospectus or summary prospectus which contains this and other information about the funds. The prospectus or summary prospectus should be read carefully before investing.
ETF Characteristics
An index fund’s return may not match the return of the applicable index. Securities held by an index 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 a fund by authorized participants, in very large creation/redemption units. If a 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 a fund's net asset value and possibly face delisting.
Risk Considerations
The funds’ shares will change in value, and you could lose money by investing in the funds. One of the principal risks of investing in the funds is market risk. Market risk is the risk that a particular stock owned by the funds, fund shares or stocks in general may fall in value. There can be no assurance that the funds’ investment objective will be achieved.
A fund may invest in securities issued by companies concentrated in a particular industry or sector which involves additional risks including limited diversification. A fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.
The prices of equity securities fluctuate for several reasons, including changes in investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur.
If a fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares.
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. A fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of a fund's investment and the value of fund shares.
LEGR 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.
Blockchain technology is an entirely new and relatively untested technology and may never be implemented to a scale that provides identifiable economic benefit to the companies included in the index. Blockchain systems could be vulnerable to fraud. There is little regulation of blockchain technology and because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that it may be subject to widespread and inconsistent regulation. The values of the companies included in the index may not be a reflection of their connection to blockchain technology, but may be based on other business operations. Currently, blockchain technology is primarily used for the recording of transactions in digital currency, which are extremely speculative, unregulated and volatile. Because digital assets registered in a blockchain do not have a standardized exchange, like a stock market, there is less liquidity for such assets and greater possibility of fraud or manipulation.
As the use of Internet technology has become more prevalent in the course of business, the funds have become more susceptible to potential operational risks through breaches in cyber security.
LEGR is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
First Trust Advisors L.P. is the adviser to the funds. 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.
Investors should review all relevant offering materials, including all applicable risk factors, and should consult with financial and tax advisors relating to tax and other consequences of investing in a particular security prior to making an investment.
The views and opinions expressed are for informational purposes only. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities (in any jurisdiction to any person to whom it is not lawful to make such an offer) and should not be considered specific legal, investment or tax advice.
For Investors in Mexico:
The funds have been cross-listed on the Bolsa Mexicana de Valores.
Investors should review all relevant offering materials, including all applicable risk factors, and should consult with financial and tax advisors relating to tax and other consequences of investing in a particular security prior to making an investment. None of the securities herein have been registered with the National Securities Registry (Registro Nacional de Valores) maintained by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores). Securities not cross-listed on the Bolsa Mexicana de Valores nor registered with the National Securities Registry (Registro Nacional de Valores) may not be offered or sold publicly or otherwise be the subject of brokerage activities in Mexico, except pursuant to the private placement exemption set forth in article 8 of the Securities Market Law (Ley del Mercado de Valores), to institutional and qualified investors, as defined under Mexican law and rules thereunder.
The cross listing of the securities identified herein does not constitute or imply a certification as to the investment quality of such securities or the accuracy or completeness of the information included in all offering materials. The offering materials are solely First Trust’s responsibility and have not been reviewed or authorized by the CNBV or the BMV and may not be publicly offered or distributed in Mexico. In making an investment decision, all investors, including any Mexican investor, must rely on their own examination of the relevant securities and the marketing materials.
"Indxx" and "Indxx Blockchain Index" are trademarks of Indxx, LLC and have been licensed for use for certain purposes by First Trust Advisors L.P. First Trust Indxx Innovative Transaction & Process ETF is based on the Indxx Blockchain Index and is not sponsored, endorsed, sold or promoted by Indxx, LLC, and Indxx, LLC makes no representation regarding the advisability of trading in such product.
The Capital Strength IndexTM is the trademark (the "Mark") of Nasdaq. The Mark is licensed for use by First Trust Portfolios L.P. The fund has not been passed on by Nasdaq as to its legality or suitability. The fund is not issued, endorsed, sold or promoted by Nasdaq. The fund should not be construed in any way as investment advice by Nasdaq. NASDAQ MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE FUND OR THE CAPITAL STRENGTH INDEXTM.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180521006031/en/
Contacts:
Ryan Issakainen
(630) 765-8689
RIssakainen@FTAdvisors.com
