First Trust Advisors L.P. (“First Trust”), a provider of more than 200
investment products, announced the launch of the International
Multi-Asset Diversified Income Index Fund (NASDAQ: YDIV), an
exchange-traded fund (ETF) which is expected to begin trading on NASDAQ
on August 23, 2013.
The International Multi-Asset Diversified Income Index Fund (“the Fund”)
seeks investment results that correspond generally to the price and
yield (before the Fund’s fees and expenses) of the NASDAQ International
Multi-Asset Diversified Income IndexSM. The Fund provides
international exposure to a diversified mix of asset classes in a single
investment portfolio that has built-in volatility screens. Yield is the
main driver behind the index; however, within each asset class a maximum
volatility cap is used that seeks to limit securities that have high
yields strictly due to poor price performance. The portfolio is further
diversified within each asset class. As a result, the Fund provides the
potential for a lower-risk total return alternative to investing solely
in one asset class. Since income is generated from multiple sources, the
Fund may provide less interest-rate sensitivity than traditional
fixed-income securities. It is important to note that diversification
does not guarantee profit or protect against loss.
The index is comprised of international dividend-paying stocks,
international real estate investment trusts (REITs), non-U.S.
infrastructure companies, non-U.S. preferred securities and an ETF that
invests in non-U.S. debt instruments. Every asset class has its own set
of eligibility criteria, and every security in the index is
non-U.S.-listed and meets stringent eligibility criteria based on
liquidity, size, volatility and yield. The index is rebalanced in every
“The Fund will seek to deliver a relatively high level of income for
investors, while also providing diversification benefits to traditional
fixed income portfolios,” said Ryan Issakainen, Senior Vice President
and ETF Strategist at First Trust. “This diversified approach, with
built-in rebalancing, may also help income-seeking investors maintain
discipline during periods of volatility.”
For more information about First Trust, please contact Chris Moon of
JCPR at 973-850-7304 or email@example.com.
About First Trust
First Trust Advisors L.P., along with its affiliate First Trust
Portfolios L.P., are privately-held companies which provide a variety of
investment services, including asset management and financial advisory
services, with collective assets under management or supervision of
approximately $73 billion as of July 31, 2013 through unit investment
trusts, exchange-traded funds, closed-end funds, mutual funds and
separate managed accounts. First Trust is 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 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
The Fund lists and principally trades its shares on The NASDAQ Stock
The Fund’s return may not match the return of the NASDAQ International
Multi-Asset Diversified Income IndexSM. The Fund may not be
fully invested at times. 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
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 security
owned by the Fund, Fund shares or securities in general may fall in
REITs are subject to certain risks, including changes in the real estate
market, vacancy rates and competition, volatile interest rates and
Infrastructure companies are subject to certain risks, including price
and supply fluctuations caused by international politics, energy
conservation, taxes, price controls, and other regulatory policies of
Preferred securities combine some of the characteristics of both common
stocks and bonds. Preferred securities are typically subordinated to
bonds and other debt instruments in a company’s capital structure, in
terms of priority to corporate income, and therefore will be subject to
greater credit risk than those debt instruments. Preferred securities
are also subject to credit risk, interest rate risk and income risk.
The Fund may invest in small capitalization and mid capitalization
companies. Such companies may experience greater price volatility than
larger, more established companies.
Because the Fund invests in exchange-traded funds that invest in fixed
income securities, it is subject to additional risks pertaining to
interest rates and credit risk. Credit risk may be heightened if the
Fund invests in “high yield” or “junk” debt; such securities, while
generally offering higher yields than investment grade debt with similar
maturities, involve greater risks, including the possibility of dividend
or interest deferral, default or bankruptcy, and are regarded as
predominantly speculative with respect to the issuer’s capacity to pay
dividends or interest and repay principal.
An investment in a fund containing equity securities of foreign issuers
is subject to additional risks, including currency fluctuations,
political risks, withholding, the lack of adequate financial
information, and exchange control restrictions impacting foreign
issuers. These risks may be heightened for securities of companies
located in, or with significant operations in, emerging market
countries. Because the Fund’s NAV is determined on the basis of U.S.
dollars and the Fund invests in foreign securities, you may lose money
if the local currency of a foreign market depreciates against the U.S.
dollar. Additionally, the Fund invests in depositary receipts which may
be less liquid than the underlying shares in their primary trading
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
Nasdaq®, OMX®, Nasdaq OMX® and NASDAQ International Multi-Asset
Diversified Income Index℠ are registered trademarks and service marks of
The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as
the “Corporations”) and are licensed for use by First Trust Advisors
L.P. The fund has not been passed on by the Corporations as to its
legality or suitability. The fund is not issued, endorsed, sold, or
promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND
BEAR NO LIABILITY WITH RESPECT TO THE FUND.