S&P Indices to Calculate Expanded, Global Line of Custom Indices for First Trust

NEW YORK, Oct. 17, 2011 /PRNewswire/ -- Leveraging its distinctive capabilities to calculate and support customizations of indices across all methodology types and regions, S&P Indices announced today that it will develop, maintain and calculate an expanded, global line of custom indices for First Trust Portfolios L.P. The 20 new indices (10 real-time/10 end-of-day) use the same AlphaDEX® screening methodology as other S&P custom indices that serve as the basis for existing First Trust ETFs.

"The calculation of these new indices highlights our ability to customize methodologies to meet the evolving needs of our clients," says Michael Mell, Associate Director of Custom Indices at S&P. "We are excited to bring our custom indexing capabilities to First Trust for these S&P custom indices."

According to First Trust, the new indices will be part of their Defined Index Series - a modified equal-dollar weighted index series calculated by S&P Indices to objectively identify and select stocks from the S&P Global BMI that may generate positive alpha relative to traditional passive indices through the use of the AlphaDEX® screening methodology. Alpha generation 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.

The 20 new indices launched today are:

• Defined Australia Index (Price and Total Return)
• Defined Canada Index (Price and Total Return)
• Defined Germany Index (Price and Total Return)
• Defined Hong Kong Index (Price and Total Return)
• Defined India Index (Price and Total Return)
• Defined Switzerland Index (Price and Total Return)
• Defined Taiwan Index (Price and Total Return)
• Defined United Kingdom Index (Price and Total Return)
• Defined Developed Markets Ex-U.S. SmallCap Index (Price and Total Return)
• Defined Emerging Markets SmallCap Index (Price and Total Return)

"First Trust is excited to team up with S&P once again to create custom indices based on our proprietary AlphaDEX® stock selection methodology. These new indices are a testament to the growing interest in indices designed with transparent, rules-based methodologies that seek to provide an alternative to market-cap-weighted beta indices," said Ken Hass, Senior Vice President of New Product Development at First Trust.

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, a leading brand of the McGraw-Hill Companies (NYSE: MHP), 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.

It is not possible to invest directly in an index. S&P Indices 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 S&P Indices 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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