This Week’s ETF Launches: First Trust Tries Its Hands at Sectors

When investors think of the largest exchange-traded fund (ETF) issuers, Vanguard, Blackrock and State Street tend to dominate the conversation. However, investors may also want to add First Trust to that list. The asset manager, first known for its unit investment trusts, has quickly become one of the largest sponsors of ETFs. More importantly, its product line has been driven by innovation, rather than by just copy-catting bread-n-butter indexes or strategies. First Trust’s latest grouping of seven ETFs continues the trend. The smart-beta funds don’t just delve into sectors, but also that of sub-sectors – many of which don’t actually have a traditional ETF backing them. For First Trust and investors, the new funds could be a big-time win.