The fund will seek investment results that correspond generally to the price and yield of the Nasdaq OMX Global Auto Index, which is designed to track the performance of the largest and most liquid companies engaged in the manufacturing of automobiles.
First Trust Advisors vice president ETF strategist Ryan Issakainen said that the company is launching this fund as a way for investors to potentially capitalize on the trend toward increasing demand of automobiles which has led automakers and suppliers to grow in emerging markets and consolidate operations in mature markets.
"According to Zacks Equity Research, the stage has been set for growth over the next decade with the belief the global auto industry landscape will be ruled by automakers based in the six major auto markets of China, India, Japan, Korea, Western Europe and the U.S."
First Trust Advisors, the fund’s investment advisor, along with its affiliate First Trust Portfolios, the fund’s distributor, are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and municipal and corporate investment banking.
