First Trust Debuts ETF Aligned With Shifting Global Trade Dynamics

First Trust Advisors has introduced a new thematic fund targeting opportunities as global supply chains tighten and specific aspects of production migrate closer to the U.S.

• DGLO ETF capitalizes on deglobalization. Check its live prices here.

At an expense ratio of 0.7%, the First Trust RBA Deglobalization ETF DGLO tracks the RBA U.S. Deglobalization Index. It’s designed to focus on sectors like industrials, energy, materials, and cybersecurity. These niches are being perceived as potential victors in a world where geopolitical tensions and supply chain threats are encouraging businesses to reshore.

The index selects firms with high U.S.-sourced revenue, positive earnings expectations, and strong balance sheets. Aerospace and defense exposure is a primary selection factor, consistent with expectations of continued demand in these sectors under increased geopolitical uncertainty.

Richard Bernstein, CEO of index provider Richard Bernstein Advisors, which sponsors the DGLO fund, said the idea is an extension of RBA’s ongoing studies of the economic impact of deglobalization.

He added that this ETF provides investors with access to a structural change that might frame markets for years.

First Trust, with about $278 billion in assets under management across multiple investment vehicles as of June 30, is framing DGLO as an investors’ vehicle for thematic exposure to one of the decade’s most characteristic macroeconomic trends.

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