First Trust takes on major players with launch of ETF range

First Trust Advisors is planning to open up its $4.6bn enhanced index fund range to the UK market, taking on the likes of BlackRock and Vanguard in the ETF space.

The group is planning to launch a handful of its 39-strong AlphaDEX exchange traded funds (ETFs) under UCITS IV at the end of the first quarter, subject to regulatory approval. Unlike a traditional ETF, First Trust's enhanced index funds do not track an index by a company's market cap size. Instead, stocks are ranked according to value and growth factors. Dan Lindquist, managing director of First Trust, said the AlphaDEX range offers investors the opportunity to outperform stock markets. "We believe this is the optimal time to expand the range outside of the United States because o...