First Trust Advisors introduced a new ETF that targets the global automobile industry.
The First Trust NASDAQ Global Auto Index Fund (CARZ) follows a newly established benchmark called the
NASDAQ OMX Global Auto Index, which is designed to track the performance of the largest and most liquid companies engaged in the manufacturing of automobiles.
“We are launching this fund as a way for investors to potentially capitalize on the trend toward increasing demand of automobiles, which has led automakers and suppliers to grow in emerging markets and consolidate operations in mature markets,” says Ryan Issakainen, vice president and ETF Strategist at First Trust Advisors.
CARZ has 32 holdings and the median market size of stocks within the fund is $9.49 billion. The fund’s top three holdings are Daimler AG, General Motors and Honda Motor.