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An index ETF that provides exposure to companies in the medical device industry
WHEATON, Illinois – (BUSINESS WIRE) –
First Trust Advisors LP (“First Trust”), a leading provider of exchange-traded funds (“ETF”) and asset manager, today announced that it has launched a new ETF, the First Trust Indxx Medical Devices ETF (Cboe: MDEV) (the “Fund”). The fund seeks investment results which generally correspond to the price and performance (before the fund’s fees and expenses) of an index called the Indxx Global Medical Equipment Index (the “Index”).
“The 2020 global pandemic has put healthcare at the forefront of news headlines and kitchen table conversations. Growing medical awareness in emerging economies due to an aging population, increased accumulation of wealth, and the government’s focus on healthcare infrastructure all pave the way for increased investment in medical equipment. Said Rahul Sen Sharma, Managing Partner of Indxx. The fund provides exposure to global companies that make up the medical device industry, that is, those that focus on the development of equipment, instruments and machines to diagnose, monitor and treat diseases. .
Indxx Chief Revenue Officer Vaibhav Agarwal added, “Our index is the product of a unique methodology supported by top-notch research. It tracks the world’s top 50 companies by market capitalization in the medical equipment industry. We are excited to work with First Trust who recognizes the value of providing US investors with access to this growing industry. ”
“Many technological developments underway to enable new discoveries and new treatment methods in healthcare are important, and we believe there are strong incentives to find ways to harness these global innovations,” said Ryan Issakainen, CFA, Senior Vice President, ETF. Strategist at First Trust. “As a leading provider of thematic ETFs, we are delighted to offer MDEV as a way to market ourselves in the medical device industry. ”
For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or [email protected]
About First Trust
First Trust is a federally registered investment advisor and acts as the fund’s investment advisor. First Trust and its affiliate First Trust Portfolios LP (“FTP”), a brokerage registered with FINRA, are private companies that provide a variety of investment services. First Trust manages or oversees approximately $ 199 billion in collective assets as of May 28, 2021 through mutual funds, exchange-traded funds, closed-end funds, mutual funds and segregated managed accounts . First Trust is the supervisor of the First Trust mutual funds, while FTP is the sponsor. FTP is also a distributor of UCITS units 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 carefully consider the investment objectives, risks and costs and expenses of the fund before investing. Contact First Trust Portfolios LP at 1-800-621-1675 to obtain a prospectus or summary prospectus that contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.
The performance of a fund may not match the performance of its underlying index. A fund invests in securities included in the index regardless of investment merit and securities held by a fund will generally not be bought or sold in response to market fluctuations.
Investors who buy or sell fund units in the secondary market can pay the usual brokerage commissions. Market prices may differ to some extent from the net asset value of the shares. Investors who sell shares of the fund may receive less than the net asset value of the share. Shares can be sold throughout the day on the stock market through any brokerage account. However, unlike UCIs, shares can only be redeemed directly from a UCI by authorized participants in very large creation / redemption units. If the authorized participants of a fund are unable to act on create / redeem orders and no other authorized participant is able to intervene to create or redeem, the shares of the fund may be traded with a discount in relation to the net asset value of a fund and possibly be subject to write-off.
The shares of a fund will change in value and you could lose money by investing in a fund. One of the main risks of investing in a fund is market risk. Market risk is the risk that a particular security held by a fund, shares of funds or securities in general will lose value. There can be no assurance that the investment objective of a fund will be achieved. The outbreak of respiratory disease known as COVID-19 in December 2019 caused significant volatility and declines in global financial markets, causing losses to investors. While vaccine development has slowed the spread of the virus and allowed the resumption of “reasonably” normal business activity in the United States, many countries continue to impose lockdowns in an attempt to slow the spread. In addition, there is no guarantee that the vaccines will be effective against emerging variants of the disease.
Changes in exchange rates and the relative value of currencies other than the United States can affect the value of a fund’s investments and the value of a fund’s shares.
As the use of internet technology has become more prevalent in the course of doing business, a fund has become more sensitive to potential operational risks due to cybersecurity breaches.
Certificates of deposit may be less liquid than the underlying stocks in their primary trading market.
Securities of non-US issuers are subject to additional risks, including currency fluctuations, political risks, holdbacks, lack of adequate financial information and currency control restrictions affecting non-US issuers. These risks may be increased for the securities of companies located or having significant activities in emerging countries.
Healthcare businesses can be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services, and product liability claims, among other factors. Many healthcare companies rely heavily on patent protection, and the expiration of a company’s patent can hurt that company’s profitability. Healthcare companies are also subject to competitive forces that can drive price reductions, can be small-capitalized, and likely to become obsolete.
A fund may be part of one or more indices, which could greatly affect the trading activity, size and volatility of a fund.
There can be no assurance that the index provider or its agents will compile or maintain the index accurately.
Large inflows and outflows can impact a new fund’s market exposure for limited periods.
A fund classified as “undiversified” may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a fund may be more sensitive to a single adverse economic or regulatory event affecting one or more of these issuers, experience increased volatility and be highly focused on certain issuers.
A fund and its advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect yourself against such risks.
A fund that is highly exposed to a single asset class, a single industry or a single sector may be more affected by adverse economic or political developments than a broadly diversified fund.
Small and mid-cap companies may experience greater price volatility than larger, more established companies.
Trading on the stock exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements for maintaining a Fund’s listing on a stock exchange will continue to be met or remain unchanged.
First Trust Advisors LP is the fund’s advisor. First Trust Advisors LP is an affiliate of First Trust Portfolios LP, the distributor of the fund.
Please see the fund prospectus for a full description of the risks of investing in the fund.
The information presented is not intended to constitute an investment recommendation or advice to any particular person. By providing this information, First Trust does not undertake to give advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.
Indxx and Indxx Global Medical Equipment Index (“Index”) are trademarks of Indxx, LLC (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading any such product. The index is determined, composed and calculated by Indxx without taking into account First Trust or the Fund.
Source: First Trust Advisors LP