New ETF to Market Based on ISE Global Wind Energy Index
First ETF to Provide Benchmark for Emerging Industry Sector
– The International Securities Exchange (ISE) announced that
it has entered into an agreement with First Trust Advisors L.P. to create and list an exchange traded fund (ETF) based on the ISE Global Wind Energy Index, the newest addition to ISE’s suite of innovative proprietary indexes.
The ISE Global Wind Energy Index includes global listings of
companies that are active in the wind energy industry.
“The ISE Global Wind Energy Index tracks a vital component of the global alternative energy industry,” said Kris Monaco, Director of New Product Development at ISE. “We are very pleased to again work with First Trust to create a vehicle that will enable investors to gain exposure to this industry of growing global importance.”
“First Trust is extremely pleased to launch another pioneering exchange-traded fund with ISE,” said Robert F. Carey, CFA and Chief Investment Officer at First Trust. “We continually evaluate opportunities to broaden the First Trust family of ETFs, and the First Trust ISE Global Wind Energy Index Fund will enhance our unique specialty sector offerings.
”The First Trust ISE Global Wind Energy Index Fund will normally invest at least 90% of assets in common stocks that comprise the ISE Global Wind Energy Index. The index is a modified market cap-weighted portfolio with 53 companies. Companies having been identified as providing products and services exclusively to the wind energy industry are given an aggregate weight of 66.67% of the index portfolio. Companies determined to be significant participants in the wind energy industry despite not being exclusive to the industry are given an aggregate weight of 33.33% of the index portfolio.
Index eligibility is limited to those companies that are actively
engaged in some aspect of the wind energy industry, such as the development or management of a wind farm or the production or distribution of electricity generated by wind power. The index
is calculated in real-time and published on Reuters under the code ISEWE, but will soon be available on Options Price Reporting Authority under the ticker symbol GWE.
The fund will be listed on NYSE Arca under the ticker symbol FAN. The anticipated listing date is Wednesday, June 18, 2008.
In addition to the First Trust Global Wind Energy Index Fund, First Trust Advisors offers additional ETFs that are based on ISE’s proprietary indexes. The First Trust ISE Chindia Index Fund (FNI),
the First Trust ISE-Revere Natural Gas Index Fund (FCG), and the First Trust ISE Water Index Fund (FIW) currently have over $250 million in aggregate assets under management.
