An index-tracking ETF that provides exposure to
companies that comprise the digital health industry
First Trust Advisors L.P. (“First Trust”), a leading
exchange-traded fund (“ETF”) provider and asset manager, announced
today that it has launched a new ETF, the First Trust Nasdaq Lux
Digital Health Solutions ETF (Nasdaq: EKG) (the “fund”). The fund
seeks investment results that correspond generally to the price and
yield (before the fund’s fees and expenses) of an index called the
Nasdaq Lux Health Tech Index (the “index”), which provides exposure
to companies focused on healthcare technology innovations in
medical and surgical devices, clinical diagnostics,
healthcare-related business/productivity software or some other
healthcare technology identified as digital health.
“The health care sector is leveraging technology in new and
innovative ways that have the potential to both raise our standard
of living and improve patient outcomes,” said Ryan Issakainen, CFA,
Senior Vice President, ETF Strategist at First Trust. “We believe
EKG will appeal to investment professionals seeking exposure to
some of the most innovative stocks at the intersection of health
care and technology,” Issakainen said.
The Nasdaq Lux Health Tech Index (NQHTEC) was launched on July
19, 2021, in partnership with Lux Capital, a venture capital firm
focused on emerging science and technology, with the primary goal
of constructing a new, differentiated benchmark of publicly-listed
companies that are leading the integration of cutting-edge
technology across numerous areas within the healthcare industry.
The profile of index constituents spans across biotech, medical
devices, software, medical services, and diagnostic tools, offering
investors exposure to key areas of health technology such as
genomics, proteomics, advanced therapeutics, and digital
health.
“We’ve spent years obsessed with deep technology innovation
taking place at the intersection of industries at health and
technology and beyond. As we’ve seen recently, the outputs of
incredible advancements and acceleration in healthtech meaningfully
impact society,” said Peter Hébert, co-founder and managing partner
of Lux Capital. “We apply a similar level of analysis to the
selection and monitoring of companies within NQHTEC and look
forward to seeing the fund reflect that methodology.”
Cameron Lilja, Vice President and Global Head of Index Product
for Nasdaq, said: “We are seeing rapid innovation and digital
transformation in the healthcare industry, exacerbated by the
COVID‐19 pandemic. These technological advancements have the
potential to improve the quality of healthcare services and enhance
the industry’s ability to deliver healthcare to the individual. Our
index offers investors a unique and compelling solution for
tracking this highly relevant and exciting theme, and our work with
Lux and First Trust provides access to this theme for the investing
public.”
For more information about First Trust, please contact Ryan
Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust is a federally registered investment advisor and
serves as the fund’s investment advisor. First Trust 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 has collective assets under
management or supervision of approximately $210 billion as of
February 28, 2022 through unit investment trusts, exchange-traded
funds, closed-end funds, mutual funds and separate managed
accounts. First Trust is the supervisor of the First Trust unit
investment trusts, while FTP is the sponsor. FTP is also a
distributor of mutual fund shares and exchange-traded fund creation
units. First Trust and FTP are based in Wheaton, Illinois. For more
information, visit http://www.ftportfolios.com.
About Lux Capital
Lux Capital invests in emerging science and technology ventures
at the outermost edges of what is possible. They partner with
iconoclastic inventors challenging the status quo and the laws of
nature to bring their futuristic ideas to life. Over the past two
decades, Lux has expanded from its New York City roots to Silicon
Valley, and built a $4 billion AUM firm of more than 30 full-time
professionals, with the versatility to invest at any stage.
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 or visit
www.ftportfolios.com to obtain a prospectus or summary prospectus
which contains this and other information about the fund. The
prospectus or summary prospectus should be read carefully before
investing.
Risk Considerations
A fund’s return may not match the return of its underlying
index. A fund invests in securities included in the index
regardless of investment merit and the securities held by a 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 a fund by authorized
participants in very large creation/redemption units. If a 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 a fund’s net asset value and possibly face
delisting.
A fund’s shares will change in value, and you could lose money
by investing in a fund. One of the principal risks of investing in
a fund is market risk. Market risk is the risk that a particular
stock owned by a fund, fund shares or stocks in general may fall in
value. There can be no assurance that a fund’s investment objective
will be achieved. In February 2022, Russia invaded Ukraine which
has caused and could continue to cause significant market
disruptions and volatility within the markets in Russia, Europe,
and the United States. The hostilities and sanctions resulting from
those hostilities could have a significant impact on certain fund
investments as well as fund performance. 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. While the
development of vaccines has slowed the spread of the virus and
allowed for the resumption of "reasonably" normal business activity
in the United States, many countries continue to impose lockdown
measures in an attempt to slow the spread. Additionally, there is
no guarantee that vaccines will be effective against emerging
variants of the disease.
As the use of Internet technology has become more prevalent in
the course of business, funds have become more susceptible to
potential operational risks through breaches in cyber security.
Health care companies may be affected by government regulations
and government health care programs, increases or decreases in the
cost of medical products and services and product liability claims,
among other factors. Many health care companies are heavily
dependent on patent protection, and the expiration of a company’s
patent may adversely affect that company’s profitability. Health
care companies are also subject to competitive forces that may
result in price discounting, may be thinly capitalized and
susceptible to product obsolescence.
Companies in health care technology may be susceptible to risks
which include, but are not limited to, small or limited markets for
such securities, changes in business cycles, world economic growth,
technological progress, rapid obsolescence, and government
regulation. Securities of health care technology companies,
especially smaller, start-up companies, tend to be more volatile
than securities of companies that do not rely heavily on
technology.
A fund may be a constituent of one or more indices or models
which could greatly affect a fund’s trading activity, size and
volatility.
There is no assurance that the index provider or its agents will
compile or maintain the index accurately.
Large capitalization companies may grow at a slower rate than
the overall market.
Large inflows and outflows may impact a new fund’s market
exposure for limited periods of time.
A fund classified as “non-diversified” may invest a relatively
high percentage of its assets in a limited number of issuers. As a
result, a 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.
A fund and a fund's advisor may seek to reduce various
operational risks through controls and procedures, but it is not
possible to completely protect against such risks.
A fund with significant exposure to a single asset class,
country, region, industry, or sector may be more affected by an
adverse economic or political development than a broadly
diversified fund.
Securities of small- and mid-capitalization companies may
experience greater price volatility and be less liquid than larger,
more established companies.
Trading on the exchange may be halted due to market conditions
or other reasons. There can be no assurance that the requirements
to maintain the listing of a fund on the exchange will continue to
be met or be unchanged.
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 information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
Nasdaq® and Nasdaq Lux Health Tech Index are registered
trademarks and service marks of Nasdaq, Inc. (together with its
affiliates hereinafter referred to as the “Corporations”) and are
licensed for use by First Trust. The Fund has not been passed on by
the Corporations as to its legality or suitability. The Fund is not
issued, endorsed, sold or promoted by the Corporations. THE
CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT
TO THE FUND.
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version on businesswire.com: https://www.businesswire.com/news/home/20220323005600/en/
Ryan Issakainen First Trust (630) 765-8689
RIssakainen@FTAdvisors.com
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