ISE Announces Relationship with First Trust Advisors to Bring ETFs to Market Based on Three Proprietary ISE Indexes
February 26 2007 - 7:53AM
Business Wire
The International Securities Exchange (NYSE: ISE) announced today
that it has entered into an agreement with First Trust Advisors
L.P., a major investment management firm, to create and list
Exchange-Traded Funds (ETFs) on three proprietary ISE indexes.
First Trust plans to develop ETFs based on the ISE Water Index
(underlying index ticker: HHO), ISE-Revere Natural Gas Index
(underlying index ticker: FUM), and ISE ChIndia Index (underlying
index ticker: to be determined). Currently in the development
stages, the ISE ChIndia Index will include U.S. listings of firms
domiciled in China and India. ISE currently lists options on the
ISE Water Index and the ISE-Revere Natural Gas Index. Bruce D.
Goldberg, ISE�s Chief Marketing Officer, noted, �Our partnership
with First Trust to create three ETFs is a significant step as we
look to further establish our indexes as sector benchmarks and
broaden our index business beyond options trading. We are pleased
that investors will now have another vehicle to gain exposure to
these specialized industry and emerging market sectors through
First Trust�s ETFs.� �First Trust is extremely pleased to team up
with ISE in licensing these three unique indexes for the purpose of
sponsoring exchange traded funds,� said R. Scott Hall, Managing
Director of First Trust Advisors L.P. �We believe each fund
provides financial advisors with an attractive investment vehicle
for their clients targeting these niche market opportunities.�
First Trust has filed for the necessary approvals from the
Securities and Exchange Commission and, pending those approvals,
expects to list the ETFs in early May. The listing exchange and
ticker symbols for the ETFs are to be determined. Additional
details regarding each ETF are below: First Trust ISE-Revere
Natural Gas Index Fund - The Fund will normally invest at least 90%
of total assets in common stocks that comprise the ISE-Revere
Natural Gas Index, which currently contains 30 companies that
derive a substantial portion of their revenues from the exploration
and production of natural gas. Index eligibility is limited to
those companies that have a greater quantity of proven natural gas
reserves compared to crude oil. Candidates are also screened
against several stock performance metrics and by their correlation
to natural gas futures prices. First Trust ISE Water Index Fund -
The Fund will normally invest at least 90% of its total assets in
common stocks that comprise the ISE Water Index, a modified market
cap-weighted portfolio of 36 stocks that derive a substantial
portion of their revenues from the potable and wastewater
industries. First Trust ISE ChIndia Index Fund - The Fund will
normally invest at least 90% of its total assets in common stocks
that comprise the ISE ChIndia Index. Currently in development, this
index will be a modified market cap-weighted portfolio of up to 50
companies domiciled in China or India that are currently trading on
U.S. exchanges. Additional information about ISE�s portfolio of
proprietary sector indexes, including methodology guides, component
lists and weightings, performance metrics and historical data, is
available on ISE�s website, www.iseoptions.com, on the Products
Traded / Index Options page. ISE Background International
Securities Exchange Holdings, Inc. (NYSE: ISE), through its
subsidiaries, operates a family of innovative securities markets.
ISE is founded on the principle that technology and competition
create better, more efficient markets for investors and consists of
an options exchange, a stock exchange and an alternative markets
platform. ISE continually enhances its trading systems and develops
new products to provide investors with the best marketplace and
investment tools to trade smarter. ISE developed a unique market
structure for advanced screen-based trading systems and in May 2000
launched the first fully-electronic US options exchange. Currently,
ISE operates the largest U.S. equity options exchange and is among
the leading options exchanges in the world. ISE offers index
options, including a portfolio of proprietary index products, and
enhanced market data products for sophisticated investors. ISE FX
Options� are slated to launch in 2007. ISE Stock Exchange, launched
in September 2006 with strategic partners, includes an innovative
MidPoint Match� platform which offers investors continuous price
improvement. MidPoint Match was integrated with a fully-displayed
Best Bid Offer market in December 2006. ISE�s alternative markets
business currently consists of an events market trading platform
known as Longitude. Longitude�s patented and proprietary technology
provides a unique parimutuel structure for derivatives auctions
which results in greater trading and pricing flexibility for market
participants. For more information about ISE and its options
exchange, visit www.iseoptions.com and for more information about
ISE Stock Exchange, visit www.isestock.com. Additionally, to learn
more about ISE alternative markets technology, visit
www.longitude.com. Forward Looking Statements Certain matters
discussed in this press release are �forward looking statements�
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These
statements relate to future events or our future financial
performance, and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of
activity, performance or achievements, to be materially different
from those contemplated by the forward looking statements. We
undertake no ongoing obligation, other than that imposed by law, to
update these statements. Factors that could affect our results,
levels of activity, performance or achievements and cause them to
materially differ from those contained in the forward looking
statements can be found in our filings with the Securities and
Exchange Commission, including our annual report on Form 10-K,
current reports on Form 8-K and quarterly reports on Form 10-Q, as
amended. Investors should consider the investment objectives, risks
and charges and expenses of the ETFs carefully before investing.
The prospectus for each ETF contains this and other information
about each ETF. A prospectus can be obtained by calling�First Trust
Portfolios L.P. at 1-800-621-1675. A prospectus should be read
carefully before investing. The information contained herein is not
complete and may be changed. The ETFs may not be sold until a
registration statement filed with the Securities and Exchange
Commission is effective. Nothing herein should be considered an
offer to sell the ETFs nor a solicitation of an offer to buy the
ETFs in any state where the offer or sale is not permitted.
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