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Products May 11, 2011
First Trust Launches Automobile Manufacturing ETF
First Trust Advisors L.P. has launched what it says is the first exchange-traded fund (ETF) focused on the global manufacturing of automobiles.
Reported by Rebecca Moore
The First Trust NASDAQ Global Auto Index Fund (NASDAQ: CARZ) will seek investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of the NASDAQ OMX Global Auto Index. That index is designed to track the performance of the largest and most liquid companies engaged in the manufacturing of automobiles.
“We are launching this fund as a way for investors to potentially capitalize on the trend toward increasing demand of automobiles which has led automakers and suppliers to grow in emerging markets and consolidate operations in mature markets. According to Zacks Equity Research, the stage has been set for growth over the next decade with the belief the global auto industry landscape will be ruled by automakers based in the six major auto markets of China, India, Japan, Korea, Western Europe and the U.S,” said Ryan Issakainen, Vice President, ETF Strategist, First Trust Advisors.