The International Securities Exchange (ISE) today announced that First Trust Advisors L.P. has launched two new exchange traded funds (ETFs) based on ISE's newest proprietary sector indexes, the ISE Global CopperTM Index (Ticker: ISC) and the ISE Global PlatinumTM Index (Ticker: ORE). The ISE Global Copper Index and the ISE Global Platinum Index provide benchmarks for investors interested in tracking public companies that are active in the copper mining industry or the platinum group metals mining industry, respectively.
"Commodity exposure has taken on an increasingly important role in investors' allocation decisions, and First Trust has established itself as a leader by creating targeted equity-based investment products in this area," said Kris Monaco, Director of New Product Development at ISE. "Demand for copper and platinum group metals is increasing as new and innovative uses for these natural resources are developed and as investors consider alternatives for inflation hedges. We are very excited to once again partner with First Trust to create the first equity-based investment vehicles that allow investors to participate in both event-driven news and the long-term trends in these sectors."
"Investors might be surprised to learn how vital both copper and platinum are to our economy," said Robert F. Carey, Chief Investment Officer of First Trust Advisors. "Copper is essential for industrial, technological and economic uses. In fact, it is used in every major industry, and demand is at an all-time high due to economic growth both in the U.S. and emerging countries," he stated. "Platinum is typically thought of by investors mostly for its use in high-end jewelry, but it is mainly used for industrial and consumer product applications," Mr. Carey continued. "Once again we are pleased to collaborate with ISE to create these timely new ETFs which give investors the opportunity to invest in companies that produce these vital metals," Mr. Carey concluded.
First Trust has received the necessary approvals from the Securities and Exchange Commission and the two new ETFs were listed on Nasdaq on March 12, 2010. Additional details regarding each ETF are below:
- First Trust ISE Global Copper Index Fund (Nasdaq: CU) - The Fund will
normally invest at least 90% of total assets in common stocks that comprise
the ISE Global Copper Index, which currently contains 27 companies that
provide a benchmark for investors interested in tracking public companies
that are active in the copper mining industry based on analysis of revenue
derived from the sale of copper. Component securities must be actively
engaged in some aspect of the industry, including copper mining, refining or
exploration.
- First Trust ISE Global Platinum Index Fund (Nasdaq: PLTM) - The Fund will normally invest at least 90% of total assets in common stocks that comprise the ISE Global Platinum Index, which currently contains 25 companies that provide a benchmark for investors interested in tracking public companies that are active in Platinum Group Metals mining based on revenue analysis of those companies. Platinum group metals include Platinum, Palladium, Osmium, Iridium, Ruthenium and Rhodium. Component securities must be actively engaged in some aspect of the industry such as mining, refining or exploration.
First Trust Advisors offers five 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) and First Trust ISE Water Index Fund (FIW) currently have over $800 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.
