First Trust Advisors L.P. (“First Trust”), a leading
exchange-traded fund (“ETF”) provider and asset manager, announced
today that two of its ETFs based on Nasdaq indexes are celebrating
a milestone. The First Trust NASDAQ-100 Equal Weighted Index Fund
(NASDAQ: QQEW) and the First Trust NASDAQ® Clean Edge® Green Energy
Index Fund (NASDAQ: QCLN) (collectively, “funds”) each surpassed $1
billion in assets under management (“AUM”) as of 11/30/20.
QQEW seeks to replicate as closely as possible (before the
fund’s fees and expenses) the price and yield of the NASDAQ-100
Equal Weighted Index℠. QQEW’s equal-weighted methodology seeks to
avoid the top-heavy concentration common to many market-cap
weighted indices and may be appealing to investors who are looking
to reduce stock specific risk. “For many years the NASDAQ-100
Index® has included some of the most innovative and dynamic
companies in the world. The equally-weighted approach employed by
QQEW provides investors more balanced exposure to these stocks than
a market-cap weighted index methodology,” said Ryan Issakainen,
CFA, Senior Vice President, ETF Strategist at First Trust. As of
10/30/20, the top 10 holdings in the NASDAQ-100 Index® represented
more than 58% of the index. QQEW allocates a total of 10% in these
same top 10 companies at each rebalance.
QCLN provides a broad, diversified approach to the theme of
clean energy. The fund seeks investment results that correspond
generally to the price and yield (before the fund’s fees and
expenses) of an equity index called the NASDAQ® Clean Edge® Green
Energy Index℠. “Green and renewable energy has been one of our
favorite investment themes this year, and we believe it has reached
a tipping point, as costs have declined dramatically over the past
few years and become competitive with traditional power sources.
QCLN provides a more balanced approach to this theme, providing
exposure to various aspects of green energy, including solar power,
wind power, advanced batteries, electric vehicles and others,” said
Issakainen.
QQEW and QCLN reached a combined total of over $2.6 billion in
AUM, as of 11/30/20.
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 supervision of approximately $164 billion as of
November 30, 2020 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 funds’ 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 funds. The prospectus or summary prospectus should be read
carefully before investing.
ETF Characteristics
The funds list and principally trade their shares on The Nasdaq
Stock Market LLC.
QQEW’s return may not match the return of the NASDAQ-100 Equal
Weighted IndexSM. QCLN’s return may not match the return of the
NASDAQ Clean Edge® Green Energy 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 funds’ shares will change in value and you could lose money
by investing in the funds. One of the principal risks of investing
in the funds is market risk. Market risk is the risk that a
particular security owned by the funds, fund shares or securities
in general may fall in value. There can be no assurance that the
funds’ investment objective will be achieved. The outbreak of the
respiratory disease designated as COVID-19 in December 2019 has
caused significant volatility and declines in global financial
markets, which have caused losses for investors. The COVID-19
pandemic may last for an extended period of time and will continue
to impact the economy for the foreseeable future.
The funds may invest in securities issued by companies
concentrated in a particular sector which involves additional risks
including limited diversification. The funds may invest in small
capitalization and mid capitalization companies. Such companies may
experience greater price volatility than larger, more established
companies.
Renewable and alternative energy companies can be significantly
affected by obsolescence of existing technology, short product
cycles, legislation resulting in more strict government regulations
and enforcement policies, fluctuations in energy prices and supply
and demand of alternative energy fuels, energy conservation, the
success of exploration projects, the supply of and demand for oil
and gas, world events and economic conditions. Shares of clean
energy companies have been significantly more volatile than shares
of companies operating in other more established industries. This
industry is relatively nascent and under-researched in comparison
to more established and mature sectors.
QCLN is classified as "non-diversified" and may invest a
relatively high percentage of its assets in a limited number of
issuers. As a result, the fund may be more susceptible to a single
adverse economic or regulatory occurrence affecting one or more of
these issuers, experience increased volatility and be highly
concentrated in certain issuers.
First Trust Advisors L.P. is the adviser to the funds. First
Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P.,
the funds’ distributor.
Please see each fund’s prospectus for a complete list of all the
risks of investing in the funds.
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,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgement in
determining whether investments are appropriate for their
clients.
Nasdaq®, NASDAQ-100®, NASDAQ-100 Index®, NASDAQ-100 Equal
Weighted Index℠, Clean Edge® and NASDAQ® Clean Edge® Green Energy
Index℠ are registered trademarks and service marks of Nasdaq, Inc.
and Clean Edge, Inc., respectively (together with its affiliates
hereinafter referred to as the “Corporations”) and are licensed for
use by First Trust. The Fund has not been passed on by the
Corporations as to its legality or suitability. The Funds are not
issued, endorsed, sold or promoted by the Corporations. THE
CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT
TO THE FUNDS.
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version on businesswire.com: https://www.businesswire.com/news/home/20201217006126/en/
Ryan Issakainen First Trust (630) 765-8689
RIssakainen@FTAdvisors.com
NASDAQ 100 Equal Weighted (NASDAQ:QQEW)
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NASDAQ 100 Equal Weighted (NASDAQ:QQEW)
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