First Trust launches on the LSE with the Europe Rising Dividend Achievers UCITS ETF

The First Trust Europe Rising Dividend Achievers UCITS ETF (ISIN: IE000CPG9HG3), managed by First Trust Global Funds, has been listed on the London Stock Exchange since 9 April 2026.

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Article created by the editorial staff of ETFWorld.co.uk

Rupert Haddon Managing Director at First Trust Global Portfolios

The fund tracks the performance of the Nasdaq Europe Rising Dividend Achievers Index, an index that selects European equities with a track record of dividend growth.

Structure and costs

The fund is passively managed, with physical replication of the benchmark. The Total Expense Ratio (TER) is 0.50% per annum. Under normal market conditions, the issuer indicates an expected tracking error of between 0% and 2%. The ETF may use depositary receipts to replicate securities that are not directly accessible and, to a limited extent, money market instruments or other eligible UCITS funds, as set out in the prospectus.

Benchmark index methodology

The Nasdaq Europe Rising Dividend Achievers Index applies a quantitative selection process based on dividend quality criteria. The starting point is the universe of the largest-cap stocks in the Nasdaq DM Europe Index. Stocks classified as Mortgage REITs or REITs under the ICB classification are excluded.

Eligibility criteria include:

An increase in the dividend paid over the last three and five years;

•     Positive earnings per share that have grown compared to three years prior;
•     Cash-to-debt ratio exceeding 50%;
•     Payout ratio over the last twelve months not exceeding 65%;
•     Minimum liquidity: three-month average daily trading volume (ADVT) of at least USD 5 million;
• Market capitalisation: inclusion among the top 750 stocks by free float in the initial universe.

The final selection assigns three scores to each eligible stock: five-year dividend growth (descending), current dividend yield (descending) and payout ratio (ascending). The sum of the three rankings determines the combined ranking. Up to 50 stocks with the most favourable combined ranking are selected, of which at least 33 must be classified as large-cap according to the Nasdaq methodology. In the event of a tie, the stock with the highest dividend yield takes precedence. To limit sector concentration, if an ICB sector is represented by more than 15 stocks, the component with the highest ranking is replaced by the next eligible stock from a different sector.

The index is constructed with equal weighting among the selected components. Rebalancing takes place annually for each sub-portfolio and quarterly at the overall index level, with the weights of the four sub-portfolios aligned to 25% each in March.

Operational profile and market access

The UCITS structure ensures compliance with European regulatory requirements regarding diversification, liquidity and investor protection.

Strategic context

The proposal forms part of First Trust’s European range dedicated to dividend strategies. The “Rising Dividend Achievers” approach aims to identify issuers capable of sustaining and increasing dividends over time, incorporating financial strength metrics (cash flow, leverage, payout) to filter for income quality.

Physical replication and equal-weighting reduce exposure to individual high-weighting stocks and limit sector concentration, features that are relevant for those seeking European equity exposure with a focus on growing income.

Source: ETFWorld