First Trust filed regulatory paperwork that would bring to
market a non-U.S.-focused, multi-asset-class ETF designed to
deliver solid income at a time when bond yields are low and
fixed-income markets are looking vulnerable to a big sell-off as
the Federal Reserve begins signaling that the post-crash era of
ultra-easy monetary policy may finally be starting to end.
The International Multi-Asset Diversified Income Index Fund will
track a Nasdaq index of the same name that will be composed of
five non-U.S. pockets
of the investment universe:dividend-paying stocks; REITS; preferred
securities; infrastructure companies; and undisclosed fixed-income
, according to the prospectus.
The fund will join a growing field of ETFs that have been
brought to market to offer investors comprehensive solutions to the
challenges of a low-yield world, including the Guggenheim
Multi-Asset Income ETF (NYSEArca:CVY), a $1 billion fund that has
an international focus just like the fund First Trust is putting
into registration. First Trust is already marketing the First Trust
Multi-Asset Diversified Income ETF (NYSEArca:MDIV), and it is close
to becoming a $500 million fund.
The fund may over- or underweight depending on market
conditions, and the index will be rebalanced quarterly.
The fund will be listed on the Nasdaq. First Trust hasn't yet
given the fund a ticker or expense ratio.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights
Don't forget to check IndexUniverse.com's ETF Data
2013 IndexUniverse LLC
. All Rights Reserved.