The International Securities Exchange has entered into an agreement with First Trust Advisors, an investment management firm, to create and list Exchange-Traded Funds (ETFs) on three proprietary ISE indexes.
First Trust plans to develop ETFs based on the ISE Water Index, ISE-Revere Natural Gas Index, and ISE ChIndia Index. Currently in the development stages, the ISE ChIndia Index will include US listings of firms domiciled in China and India. ISE currently lists options on the ISE Water Index and the ISE-Revere Natural Gas Index.
“Our partnership with First Trust to create three ETFs is a significant step as we look to further establish our indexes as sector benchmarks and broaden our index business beyond options trading,” says Bruce D. Goldberg, the Chief Marketing Officer at the ISE. “We are pleased that investors will now have another vehicle to gain exposure to these specialised industry and emerging market sectors through First Trust’s ETFs.”
“First Trust is extremely pleased to team up with ISE in licensing these three unique indexes for the purpose of sponsoring exchange traded funds,” adds R. Scott Hall, the Managing Director of First Trust Advisors. “We believe each fund provides financial advisors with an attractive investment vehicle for their clients targeting these niche market opportunities.”
First Trust has filed for the necessary approvals from the Securities and Exchange Commission and, pending those approvals, expects to list the ETFs in early May. The listing exchange and ticker symbols for the ETFs are to be determined.