First Trust S&P International Dividend Aristocrats ETF begins trading under ticker symbol FID

August 30, 2018

WHEATON, Ill.--(BUSINESS WIRE)--Aug 30, 2018--First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that the First Trust S&P International Dividend Aristocrats ETF (the “fund”) began trading on The Nasdaq Stock Market LLC under the ticker symbol FID. The fund seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of the S&P International Dividend Aristocrats Index (the “index”). The index is designed to measure the performance of high dividend-yielding, non-U.S. companies that have followed a managed-dividends policy of increasing or maintaining dividends for at least 10 consecutive years.

Investing internationally in high quality, dividend-paying companies may provide gains when domestic markets are flat or declining, as global markets often follow different cycles than the U.S. markets. Every security selected for the index must meet stringent eligibility criteria based on historical dividend increases, dividend yield and payout ratio. “In our opinion, dividends are often a sign of strong corporate health, and dividend increases may signal growing confidence from management. While many dividend ETFs focus on domestic stocks, we believe strong dividend policies are also important for international stocks. This ETF seeks to provide exposure to international stocks that may be well-positioned for dividend growth,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust. A company’s ability to reliably increase its dividend may be attractive to investors looking for companies that have the potential to endure difficult market and economic environments.

“Since its 2005 inception, the S&P Dividend Aristocrats index family has been one of the leading families of indices in the areas of dividend growth and providing exposure to dividend payers in many markets,” said Joe Kairen, Senior Director, S&P Dow Jones Indices. “We are delighted to extend the S&P Dividend Aristocrats index-based concept to the international, global ex. U.S. markets to measure the companies abroad that have consistently increased or maintained their dividends over a period of 10 years.”

Prior to August 30, 2018, the fund’s investment objective was to seek to track the NASDAQ International Multi-Asset Diversified Income Index. The fund, formerly known as International Multi-Asset Diversified Income Index Fund, previously traded under the ticker symbol YDIV.

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.

About First Trust

First Trust is a federally registered investment advisor and serves as the fund’s investment advisor. First Trust 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 has collective assets under management or supervsion of approximately $130 billion as of July 31, 2018 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are 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 or visit 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 investing.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock Market LLC.

The fund’s return may not match the return of the S&P International Dividend Aristocrats Index. 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 units. If the 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 the fund’s net asset value and possibly face delisting.

Risk Considerations

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 stock owned by the fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund’s investment objective will be achieved.

The fund is not actively managed and generally will not attempt to take defensive positions in declining markets.

The fund 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.

The fund may invest in securities issued by companies concentrated in a particular industry or sector, which involves additional risks, including limited diversification. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The fund may hold investments that are denominated in non-U.S. currencies, or in securities that provide exposure to such currencies, currency exchange rates or interest rates denominated in such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the fund’s investment and the value of fund shares.

There is no guarantee that the issuers of the securities in the portfolio will declare dividends in the future or that, if declared, they will either remain at current levels or increase over time.

As the use of Internet technology has become more prevalent in the course of business, the fund has become more susceptible to potential operational risks through breaches in cyber security.

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 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.

Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by First Trust Advisors L.P. The First Trust S&P International Dividend Aristocrats ETF is not sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding shares of the First Trust S&P International Dividend Aristocrats ETF.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180830005468/en/

CONTACT: First Trust

Ryan Issakainen

(630) 765-8689




SOURCE: First Trust Advisors L.P.

Copyright Business Wire 2018.

PUB: 08/30/2018 09:20 AM/DISC: 08/30/2018 09:20 AM


Update hourly