First Trust Global Portfolios has launched its First Trust Dow Jones Internet Ucits ETF, listed on the London Stock Exchange, as the latest in its continued rollout of Ucits compatible exchange traded products.
The new fund relies on the Down Jones Internet Composite index, which constitutes the performance of the 40 largest and most actively traded shares of US companies in the Dow Jones Internet sectors. The index is meant to include only companies whose primary focus is internet related; this is devined as generating at least 50% of sales/revenues from online commerce or services.
For the fund’s purposes, to be included a company must have a minimum three months’ trading history and three month average float-adjusted market capitalisation of $100m. The sector exposure implies investors will be exposed to the so-called FANGs (Facebook, Amazon, Netflix, Google), while also to other companies generating revenues from the internet.
Derek Fulton, CEO at First Trust Global Portfolios said: “We are continuing to witness exponential global growth in internet usage. This new ETF provides exposure to the growth of ecommerce in a transparent Ucits structure.”
Fulton noted that the fund joins others in the provider’s lineup of factor based and thematic ETFs. Other recent launches include a blockchain Ucits product – First Trust Indxx Innovative Transaction and Process Ucits ETF – while last year saw FTGP launch its factor based currency exchange product – First Trust FactorFX Ucits ETF.