Introducing First Trust US Equity Opportunities UCITS ETF (“FPX”)

Investing in the Power of European IPOs & Spin Offs

Fund description


Invest in the innovation of the US 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 US Equity Opportunities UCITS ETF (“FPX”) gives investors cost-effective exposure to this potential, in a single portfolio. FPX 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 U.S. Index, a modified value-weighted price index measuring the performance of the top 100 U.S.-domiciled companies ranked quarterly by market capitalization in the IPOX® Global Composite Index. The Index is a rules based value-weighted index measuring the average performance of IPOs during the first 1000 trading days. The Fund invests primarily in equity securities that are included in the Index and attempts to replicate, before fees and expenses, the performance of the Index.

Fund facts

Bloomberg Ticker
FPX LN

ISIN
IE00BYTH6238

ETF Name
First Trust US Equity Opportunities UCITS ETF (“FPX”)

Base Currency
USD

TER
0.65%

Fund Highlights

• Opportunity to gain exposure to the potential growth and innovation of new listings in a single portfolio, prior to their inclusion in mainstream equity indices, delivering innovation without the inherent single stock risk.

• FPX’s underlying holdings are reconstituted and rebalanced quarterly to ensure that each company remains among the top 100. The result is that FPX is tilted towards mid- and large-cap stocks that remain among the largest IPOs over a four-year period.

• FPX offers targeted exposure across a variety of companies that are not yet widely held by most investors which can be a natural diversifier for portfolios.

Neither First Trust Global Portfolios Limited ("FTGP") nor any of its affiliates, guarantees the performance or the future returns of the Funds.
For more details relating to risks of investing in the Funds, please refer to the "Risk Factors" section of the Fund's prospectus.
This material is produced and issued by First Trust Global Portfolios Limited ("FTGP") of 8 Angel Court, London, EC2R7HJ. FTGP is authorised and regulated by the UK Financial Conduct Authority (register no. 583261).
This website, and the information on it, do not constitute an invitation, offer or solicitation to engage in any investment activity including buying or selling any investment including any interest in a fund nor does it implicitly or explicitly recommend or suggest an investment strategy, reach conclusions in relation to an investment strategy or provide an opinion as to the present or future value or price of any fund.

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