First Trust launches actively-managed FX ETF

TER of 0.75%

First Trust Global Portfolios (FTGP) has launched an active foreign exchange ETF, the First Trust FactorFX UCITS ETF, which will be available on the LSE on 1 August.

The ETF will track a basket of between 20 to 30 currency pairs in developing and emerging markets through forward FX contracts, futures, money market instruments and short-dated sovereign debt. To hedge or not to hedge? How to think about your currency exposure Targeted at wealth managers, DFMs, advisers and institutional investors, the vehicle looks to deliver total returns by applying two risk premia - value and momentum - to the carry trade in currency markets. Therefore, it goes long on higher-yielding and undervalued currencies, while moving short on those which are overvalued...