First Trust has launched the US Momentum UCITS ETF, providing exposure to the 180 largest companies in the US market which “exhibit the strongest price momentum”.
The ETF will aim to follow the performance of the US Momentum iNDEX index, which is reviewed on a quarterly basis. iNDEX Research was founded in 2015 and has over $9bn in linked assets through its ETF and index funds.
Yaniv Kunis, founder and CEO of iNDEX Research, said: “We are excited to collaborate with an innovative ETF industry leader such as First Trust and expand our activities in the European market.
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“The US Momentum iNDEX was designed to fully implement the Momentum Factor while maintaining extensive diversification and risk management constraints. These constraints, for instance, can prevent highly volatile and significantly overvalued shares from entering the index. Given the current state of the US stock market, this conservative approach is more important than ever.”
In April, First Trust launched the Smid Rising Dividend Achievers Ucits ETF, for US small and mid-cap stocks. Across Europe, the company offers 32 UCITS ETFs.
Gregg Guerin, senior product specialist at First Trust Global Portfolios, said: “We are delighted to partner with iNDEX Research to offer investors a sophisticated tool to potentially benefit from market trends.
“By combining strong price momentum with valuation considerations, we’re proud to introduce a product that aims to capture upside potential while managing the risks typically associated with pure momentum strategies.”
