The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), Clean Edge, Inc., and First Trust Advisors L.P. have announced the launch of a new exchange traded fund (ETF) - the First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (Nasdaq:GRID). It is based on the NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index(SM) (Nasdaq:QGRD), a benchmark for the smart grid and electric infrastructure sector. The ETF is managed by First Trust Advisors L.P. and listed on NASDAQ(R).
QGRD is a modified market-capitalization index and includes companies that are primarily involved in electric grid; electric meters, devices and networks; energy storage and management; and enabling software used by the smart grid and electric infrastructure sector.
First Trust's ETF, GRID, is designed to correspond to the price and yield performance of the index on which it is based. ETFs are financial products that trade like shares of stock and can be bought and sold throughout the trading day.
"First Trust has filled the need for an investment product based on an index that has brought sharper focus to an industry that is transforming our nation's energy grid," said NASDAQ OMX Executive Vice President John Jacobs. "This ETF reflects First Trust's commitment to extending its suite of products to broaden investor choice."
"This is the first ETF to track a smart grid and electric infrastructure index," said Ron Pernick, Clean Edge Co-Founder and Managing Director. "First Trust continues to demonstrate leadership and to build a strong presence in the clean-energy sector."
"With a growing demand for electricity and the increasingly inefficient infrastructure, the current power grid is unable to keep up with the twenty first century technology," according to Ryan Issakainen, Vice President, Exchange-Traded Fund Strategist for First Trust Portfolios. "There's a growing movement towards a next generation power grid - Smart Grid. Electricity is one of the largest and most capital intensive sectors in our economy and we are tremendously excited about the potential that this industry represents."
The NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index is calculated in real-time across the combined exchanges and is disseminated by NASDAQ OMX in U.S. Dollars. The Index commenced calculation on September 22, 2009 with a value of 250.00.
The NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index is comprised of companies that are screened by Clean Edge. To view the companies in the NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index, visit www.nasdaqomx.com/indexes.