First Trust Cross-Lists an Additional ETF in Mexico

·9-min read

As Mexican demand for international investment solutions grows, First Trust expands its offerings.

First Trust Advisors L.P. ("First Trust"), a global ETF provider and asset manager, announced today that it has cross-listed an additional ETF on the Mexican stock exchange, the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores. As many institutional investors seek to invest within Mexico, First Trust is pleased to expand its offerings of ETFs. The First Trust International Equity Opportunities ETF (Ticker: FPXI) is based on IPOX International Index, which measures the performance of the 50 largest and typically most liquid companies domiciled outside the U.S. within the IPOX® Global Composite Index (the "composite index"). The composite index is constructed and managed to provide a broad and objective view of global aftermarket performance of recent initial public offerings ("IPOs") and spin-offs in both emerging and developed countries during their first 1,000 trading days.

"Recent IPOs and spin-offs represent an important segment of the international stock market that is often absent from investors’ portfolios," said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust. "This ETF provides a systematic strategy for investors to gain exposure to many of these stocks before they are added to broad international index funds and ETFs," Issakainen said.

"We are pleased to expand our Mexico cross-listings to include the First Trust International Equity Opportunities ETF. FPXI offers strategic allocation to international IPOs, powered by IPOX’s long history and academic rationale for researching and investing in new listings globally." said April Reppy Suydam, Head of Latin America Distribution, First Trust.

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.

About First Trust

First Trust, a federally registered investment advisor, and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust is the investment advisor to exchange-traded funds, closed-end funds, mutual funds, separate managed accounts and provides supervisory services to FTP sponsored unit investment trusts. First Trust’s assets under management were approximately $149.55 billion as of September 30, 2020. This includes the supervisory services First Trust provides to FTP sponsored unit investment trusts, which are unmanaged. FTP is a sponsor of unit investment trusts and distributor of mutual fund shares and exchange-traded fund creation units. First Trust is based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.

You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 to obtain a prospectus which contains this and other information about the fund. The prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock Market LLC., the Bolsa Mexicana de Valores and the Bolsa Institucional de Valores.

The fund’s return may not match the return of the IPOX® International Index. Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

Risk Considerations

The fund’s shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund’s investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.

The fund may invest in securities issued by companies concentrated in a particular sector or country which involves additional risks including limited diversification. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in a fund containing securities of non-U.S. issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others. The central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership. Actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. Furthermore, China’s economy is dependent on the economies. of other Asian countries and can be significantly affected by currency fluctuations and increasing competition from Asia’s other emerging economies.

The fund is subject to certain risks associated specifically with Hong Kong, including Hong Kong’s political and economic environment and the volatility of and the concentration of real estate companies listed on the Hong Kong Stock Exchange. Because of Hong Kong’s reversion to China, any increase in uncertainty as to the economic and political status of Hong Kong or a deterioration of the relationship between China and the U.S. could have negative implications on stocks listed on the Hong Kong Stock Exchange. Securities prices on the Hong Kong Stock Exchange can be highly volatile and are sensitive to developments in Hong Kong and China, as well as other world markets.

The stocks of companies that have recently conducted an initial public offering are often subject to price volatility and speculative trading. These stocks may have exhibited above average price appreciation in connection with the initial public offering prior to inclusion in the fund. The price of stocks included in the fund may not continue to appreciate and their performance may not replicate the performance exhibited in the past.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund’s investments and the value of a fund’s shares.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the fund’s market exposure for limited periods of time.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. Nor does the document implicitly or explicitly recommend or suggest an investment strategy, reach conclusions in relation to an investment strategy for the reader or provide an opinion as to the present or future value or price of any fund. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial professionals must determine whether particular investments are appropriate for their clients.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund’s distributor.

The views and opinions expressed are for informational purposes only. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities (in any jurisdiction to any person to whom it is not lawful to make such an offer) and should not be considered specific legal, investment or tax advice.

For Investors in Mexico:

The fund has been cross-listed on the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores.

Investors should review all relevant offering materials, including all applicable risk factors, and should consult with financial and tax advisors relating to tax and other consequences of investing in a particular security prior to making an investment. None of the securities herein have been registered with the National Securities Registry (Registro Nacional de Valores) maintained by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores). Securities not cross-listed on the Bolsa Mexicana de Valores and/or Bolsa Institucional de Valores nor registered with the National Securities Registry (Registro Nacional de Valores) may not be offered or sold publicly or otherwise be the subject of brokerage activities in Mexico, except pursuant to the private placement exemption set forth in article 8 of the Securities Market Law (Ley del Mercado de Valores), to institutional and qualified investors, as defined under Mexican law and rules thereunder.

The cross listing of the securities identified herein does not constitute or imply a certification as to the investment quality of such securities or the accuracy or completeness of the information included in all offering materials. The offering materials are solely First Trust’s responsibility and have not been reviewed or authorized by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) or the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores and may not be publicly offered or distributed in Mexico. In making an investment decision, all investors, including any Mexican investor, must rely on their own examination of the relevant securities and the marketing materials.

IPOX® and IPOX® International Index are registered international trademarks and service marks of IPOX® Schuster LLC ("IPOX") and have been licensed for use by First Trust. The Fund is not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such Fund.

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Contacts

Ryan Issakainen
First Trust
(630) 765-8689
RIssakainen@FTAdvisors.com