First Trust has launched an ETF developing on its US strategy that offers exposure to high dividends and low volatility stocks.
The First Trust Value Line Dividend Index UCITS ETF (FVD) has listed on the London Stock Exchange with an expense ratio of 0.7%.
To be included in the index, quality companies that are determined by investment research house Value Line must have a dividend yield greater than the S&P 500 Composite index and exhibited historically low volatility.
The underlying securities have a market cap greater than $1bn and are equally weighted. FVD’s underlying index is rebalanced on a monthly basis.
Gregg Guerin (pictured), senior product specialist at First Trust, said: “This latest addition to our equity solutions is a safety first strategy that can provide investment managers with the potential for greater downside protection during periods of market volatility.”
The launch of FVD shortly follows First Trust’s launch of the First Trust Capital Strength UCITS ETF (FTCS) at the end of January.