Advisors, start your engines! First Trust Advisors L.P. [see profile]
this week rolled out its first ETF focused on the global auto industry.
The First Trust NASDAQ Global Auto Index Fund
, which began trading May 10, seeks to give investors exposure to auto manufacturers in both developed and emerging markets. The fund will have exposure to 30 companies.
First Trust's Eric Anderson
(vice president and ETF analyst) and Andy Subramanian
senior vice president, rang the opening bell of the NASDAQ this morning in honor of the new ETF. Anderson told The MFWire
that the firm's impetus to launch the auto ETF stemmed from bullish advisors who wanted more exposure to the auto industry.
He said growth opportunities in the domestic and itnernational auto industry spurred the EFT's launch. "Domestically, the average age of cars is 10 years and consumers have put off buying cars because of the economy. Now, they're putting more mnoney to work," he said. "Less than six percent of Chinese consumers own cars."
First Trust currently manages some $8 billion across 58 ETFs, according to Anderson. This is up from $2 billion 16 months ago. Watch for the firm to launch additional EFTs in the energy and infrastructure complexes in the coming months.
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