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First Trust Exchange Traded Fund intends to launch a new fund focused on high-tech military investments.
According to the U.S. Securities and Exchange filing the ETF, called the First Trust Indxx Aerospace & Defense ETF, will consist of a universe of U.S. companies engaged in business activities associated with hypersonic warfare weapons technology, high power microwaves, laser technology products and electromagnetic weapons. Additionally, the fund also will engulf organizations that develop rockets, satellites, military aircrafts and cybersecurity systems.
Moreover, the exchange traded fund plans to list itself on the New York Stock Exchange, come with a 0.60% expense ratio and trade under the ticker symbol MISL.
The intended launch of MISL comes at a time of geopolitical uncertainty and heightened military conflicts in the Eurasia region. As Vladimir Putin declared martial law on four new regions of Ukraine as Russia looks to tighten its hold on the nation.
The aerospace and defense ETF will find itself competing for market share against other similar funds. Some names will include the SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR), iShares U.S. Aerospace & Defense ETF (BATS:ITA), and Invesco Aerospace & Defense ETF (NYSEARCA:PPA).
Year-to-date price action: ITA -3.8%, PPA -3%, and XAR -15.5%.
In other ETF news, BNY Mellon plans to unveil the BNY Mellon Global Infrastructure Income ETF, a fund meant to focus on dividend-paying infrastructure companies.