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The International Securities Exchange (ISE) today announced that First Trust Advisors L.P. has launched a new exchange traded fund (ETF) based on the ISE BICK™ Index (Ticker: BIQ), a new proprietary index that tracks the performance of the largest and most liquid public companies that are domiciled in Brazil, India, Mainland China or South Korea. First Trust has received the necessary approvals from the Securities and Exchange Commission and the First Trust BICK Index Fund (Nasdaq: BICK) was listed on April 13, 2010.
"Emerging markets are influencing the world economy more than ever before, and so we are very pleased to once again partner with First Trust to launch a unique investment vehicle that focuses on this area," said Kris Monaco, Director of New Product Development at ISE. "As the emerging market landscape evolves, so too must investors' choices for investment products. The First Trust BICK Index Fund is the first ETF addressing that need by providing an actionable investment opportunity in the rapidly growing economies of Brazil, India, Mainland China and South Korea."
"The four countries that make up this new First Trust ETF have had a remarkable record of economic growth," according to Robert F. Carey, Chief Investment Officer of First Trust Advisors L.P. "Although these countries are independent of one another, they share a common trait as being among the largest of the emerging markets, and that's why we believe this investment makes so much sense," he continued. "Collectively, developing economies are anticipated to grow faster than the economies of countries which are already developed. According to the International Monetary Fund, GDP growth for emerging economies is estimated to be 5.1% in 2010, compared to 1.3% for advanced economies," he stated. "Once again, we are pleased to collaborate with ISE to bring this timely investment to market," Mr. Carey concluded.
The First Trust BICK Index Fund will normally invest at least 90% of total assets in common stocks that comprise the ISE BICK Index. The index currently contains 89 companies that provide a benchmark for investors interested in tracking the largest and most liquid public companies that are domiciled in Brazil, India, Mainland China or South Korea. The Index uses an equal weighted allocation methodology for each country in the index (i.e., each country represents 25% of the index at each rebalance) as well as an equal weighted allocation methodology for all components within a country allocation.
First Trust Advisors offers seven additional ETFs that are based on ISE's proprietary indexes. The First Trust ISE Chindia Index Fund (FNI), First Trust ISE Global Engineering and Construction Index Fund (FLM), First Trust ISE Global Wind Energy Index Fund (FAN), First Trust ISE-Revere Natural Gas Index Fund (FCG), First Trust ISE Water Index Fund (FIW), First Trust ISE Global Platinum Index Fund (PLTM) and First Trust ISE Global Copper Index Fund (CU) currently have over $780 million in aggregate assets under management.
Additional information about ISE's portfolio of proprietary sector indexes, including methodology guides, component lists and weightings, performance metrics and historical data, is available at www.ise.com/index.
