S&P Indices Chosen to Calculate New Family of Custom Indices for First Trust

NEW YORK, April 14, 2011 /PRNewswire/ -- Drawing on its ability to support custom indices across all methodology types, Standard & Poor's -- the world's leading index provider -- announced today that it will develop, maintain and calculate a new family of custom indices for First Trust Portfolios L.P. First Trust's new index series, dubbed Defined Index Series, will serve as the basis for 13 new First Trust ETFs expected to launch April 19, 2011 on the NYSE Arca.

"The calculation of these 13 new indices exemplifies S&P Indices ability to independently calculate real-time, custom solutions across all methodology types," says Michael Mell, Associated Director of Custom Indices at S&P. "We are very excited to bring our custom indexing capabilities to First Trust, and serve as the power behind their new index-based series of ETFs based on the S&P Global BMI."

According to First Trust, the Defined Index Series is a modified equal-dollar weighted index series designed by S&P to objectively identify and select stocks from the S&P Global BMI that may generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX® screening methodology. Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.

The S&P Global BMI (Broad Market Index), comprised of the S&P Developed BMI and S&P Emerging BMI, is a comprehensive, rules-based index measuring global stock market performance. It represents the only global index suite with a transparent, modular structure that has been fully float adjusted since its inception in 1989.

"First Trust is very pleased to add 13 new funds, including 9 with an international focus, to our AlphaDEX® family of ETFs," said Dan Waldron, Senior Vice President and ETF Strategist at First Trust. "Our collaboration with S&P Indices has allowed us to bring a successful group of ETFs that have created alpha for investors. Currently, we have $3 billion in assets across the AlphaDEX® family."

S&P custom indices is an acknowledged global leader in the calculation of custom indices, providing unparalleled services in the design, construction, management and distribution of custom indices.  Drawing on this expertise and a global database of over 17,000 individual stocks, S&P custom indices provides an independent, flexible and accurate service enabling clients to purposefully design a custom index to meet their specific requirements across equity, commodity and fixed income asset classes.

For more information, please visit www.standardandpoors.com/indices.

About S&P Indices

S&P Indices, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.

Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment product.  This document does not constitute an offer of services in jurisdictions where Standard & Poor's or its affiliates do not have the necessary licenses.  Standard & Poor's receives compensation in connection with licensing its indices to third parties.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P.  A patent application with respect to the AlphaDEX® stock selection methodology is pending at the United States Patent and Trademark Office.

SOURCE Standard & Poor's

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