First Trust Canada will be offering nine AlphaDex funds, each of which will seek to replicate, to the extent possible, the performance of the applicable StrataQuant sector index.

“Our new U.S. sectors offerings will provide Canadians the opportunity to invest in equity sectors that have been underrepresented in the Canadian market such as health care, consumer staples and technology. These Canadian domiciled ETFs provide investors with exposure to the U.S. market without the complications of holding comparable U.S. domiciled ETFs. More specifically, Canadian tax payers holding U.S. domiciled ETFs may be subject to increasingly detailed reporting requirements by the Canadian Revenue Agency as well as potential U.S. estate tax obligations. Our products may offer a way to reduce these complexities,” said Karl Cheong, senior vice president, in a release.

The nine ETFs and StrataQuant indices are:

  • First Trust AlphaDEX U.S. Energy Sector ETF (TSX:FHE), StrataQuant Energy Index
  • First Trust AlphaDEX U.S. Health Care Sector ETF (TSX:FHH), StrataQuant Health Care Index
  • First Trust AlphaDEX U.S. Industrials Sector ETF (TSX:FHG), StrataQuant Industrials Index
  • First Trust AlphaDEX U.S. Consumer Staples Sector ETF (TSX:FHC), StrataQuant Consumer Staples Index
  • First Trust AlphaDEX U.S. Financials Sector ETF (TSX:FHF), StrataQuant Financials Index
  • First Trust AlphaDEX U.S. Utilities Sector ETF (TSX:FHU), StrataQuant Utilities Index
  • First Trust AlphaDEX U.S. Consumer Discretionary Sector ETF (TSX:FHD), StrataQuant Consumer Discretionary Index
  • First Trust AlphaDEX U.S. Materials Sector ETF (TSX:FHM), StrataQuant Materials Index
  • First Trust AlphaDEX U.S. Technology Sector ETF (TSX: FHQ), StrataQuant Technology Index

The First Trust AlphaDEX U.S. Sector ETFs follow “enhanced indices” which employ First Trust’s proprietary AlphaDEX stock selection methodology.

Each StrataQuant sector index results from applying the AlphaDEX methodology to the Russell 1000 Index (a market index representing the large capitalization segment of the U.S. equity universe), then selecting the constituent securities for the applicable index from those qualifying stocks included in the applicable sector.