Introducing First Trust European Equity Opportunities UCITS ETF (“FPXE”)

Investing in the innovativeness of the European economy. IPOs represent an exciting prospect for investors, providing an opportunity to participate in allocating capital to a company at the very start of its public trading life. An IPO or Spin Off can be a pivotal moment in a company’s lifecycle; the potential beneficiary of huge cash injections from investors placing confidence in the future of their business.

As IPOs tend to be young and innovative companies at the beginning of their growth trajectory, they have the potential to deliver superior returns to the broader market, and for this reason they can potentially be volatile. New listings are typically found in the hottest segments of the market, like automation, robotics, cloud computing and biotechnology, often those sectors at the forefront of economic growth and innovation. However, not every new listing on the public market is destined to be a profitable investment. Speculation and hype surrounding individual stocks can often distort valuations, making them potentially volatile investments. The IPO market can also be very difficult to time.

The First Trust European Equity Opportunities UCITS ETF (“FPXE”) gives investors cost-effective exposure to this potential, in a single portfolio. FPXE offers systematic exposure across many high profile companies backed by fresh equity capital. The diversified portfolio of 100 companies, selected by a well-researched, disciplined and transparent methodology, potentially reduces the risk of adverse company specific events and negative individual performance.

The Fund is based on the IPOX®-100 Europe Index, a market cap weighted index that measures the performance of recent European IPOs from the IPOX® Global Composite Index. The IPOX® Global Composite Index is designed to provide a broad and objective view of global aftermarket performance of recent IPOs and spin-offs in both emerging and developed countries during their first 1000 trading days. After applying initial screens, all eligible constituents generally must have at least six full days of trading in order to enter the index on each rebalance. All constituents are ranked by market capitalization and the 100 largest and typically most liquid companies that are economically tied to Europe are selected for the IPOX® 100 Europe Index.