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First Trust Looks to go Global With Multi-Asset Filing


First Trust, the eleventh-largest U.S. ETF issuer by assets, filed plans with the Securities and Exchange Commission to possibly introduce the First Trust International Multi-Asset Diversified Income Index Fund. That ETF, if it comes to market, would be the global equivalent of the popular First Trust Multi-Asset Diversified Income Index Fund (MDIV) .

MDIV, which debuted last August, has already attracted almost $444 million in assets under management. The International Multi-Asset Diversified Income Index Fund will track an index with the same name and feature similar investment objectives to MDIV.  [Off The Beaten Path Dividend ETFs]

The new ETF  “will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in non-U.S. common stocks and/or American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) or other depositary receipts (collectively, the “Depositary Receipts”), non-U.S. REITs, non-U.S. preferred securities, non-U.S. infrastructure companies, and an index-based exchange-traded fund that invests in non-U.S. fixed income securities that comprise the Index,” according to a First Trust filing with the SEC.

Dividend stocks currently account for 25.7% of MDIV’s weight while master limited partnerships, or MLPs, get a weight of 21.1%. Real estate investment trusts, or REITs, preferred stocks and junk bonds receive weights of 19.3%, 18.6% and 15.2%, respectively, according to First Trust data.

The Guggenheim Multi-Asset Income ETF (CVY) has $1 billion in assets and is the dominant name among multi-asset ETFs. Guggenheim also sponsors the $105.8 million Guggenheim International Multi-Asset Income ETF (HGI) which the new First Trust fund could be a competitor to.

First Trust Multi-Asset Diversified Income Index Fund


ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of CVY.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.