New First Trust ETF offers European exposure

FT Portfolios Canada, or First Trust Canada, is launching both common and advisor class units of the First Trust AlphaDEX European Dividend Index ETF.

The fund seeks to replicate the performance of the AlphaDEX European Dividend Index. Also, the fund will generally seek to hedge all of its foreign currency exposure back to the Canadian dollar.

“Relative to the U.S., European stocks are trading at very attractive valuations based on low price-to-book ratios and high dividend yields,” says Karl Cheong, senior vice president and Head of ETF Product Development at First Trust. “European corporate earnings are still 35% below peak levels obtained in 2007, so there’s significant potential for them to grow.”

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