First Trust unveils sterling- and euro-hedged share classes for FactorFX ETF

TER of 0.75%

First Trust Global Portfolios (FTGP) has launched sterling and euro-hedged share classes of the First Trust FactorFX UCITS ETF on the London Stock Exchange.

The hedged share classes will enable euro and sterling-denominated investors to access the strategy while controlling exchange rate volatility against the fund's USD base currency. Launched on 1 August, the FactorFX ETF provides investors with exposure to a basket of 20 to 30 developed and emerging currency pairs through forward FX contracts, futures, money market instruments and short-dated sovereign debt. It goes long if the currency is undervalued and higher yielding, while moving short on those which are overvalued and lower yielding. The actively-managed ETF employs carry, val...