Nasdaq Europe Rising Dividend Achievers Exclusions Index Fund

First Trust has launched a new exchange-traded fund focused on European companies with a track record of increasing dividends, aiming to provide investors with exposure to firms demonstrating sustained dividend growth while applying specific exclusions to refine the index methodology.

The FIRST TRUST EUROPE RISING DIVIDEND ACHIEVERS UCITS ETF – A EUR ACC, which began trading under the ticker symbol associated with WKN A41J9X and ISIN IE000CPG9HG3, tracks the Nasdaq Europe Rising Dividend Achievers Exclusions Index. This index is designed to measure the performance of European equity securities that have increased their dividend payments for at least ten consecutive years, while excluding companies involved in certain controversial business activities as defined by the index provider.

According to the fund documentation, the index construction process begins with the Nasdaq Europe Dividend Achievers Index, which selects constituents based on a minimum ten-year history of dividend increases. From this base, the Exclusions Index further removes companies that derive revenue from sectors such as tobacco, controversial weapons, thermal coal, and other activities deemed inconsistent with specific environmental, social, and governance (ESG) criteria. The resulting index aims to combine the dividend growth factor with a sustainability-oriented screen.

The ETF is structured as an Undertaking for Collective Investment in Transferable Securities (UCITS) fund, compliant with European Union regulations that allow for cross-border distribution within the EU. It is offered in an accumulating (ACC) share class, meaning that dividends received by the fund are reinvested rather than distributed to shareholders, potentially enhancing long-term compounding returns.

First Trust, the asset management firm behind the product, states that the fund seeks to deliver investment results that, before fees and expenses, generally correspond to the price and yield performance of the underlying index. The company emphasizes a rules-based, transparent approach to index construction, relying on quantitative criteria for inclusion and exclusion.

The launch of this ETF adds to a growing suite of thematic and factor-based exchange-traded products available to European investors, particularly those interested in combining income-oriented strategies with sustainability considerations. Dividend achiever strategies have gained attention in recent years as investors seek companies with durable business models capable of returning capital to shareholders over extended periods.

As of the latest available data, the fund’s total expense ratio (TER) and other operational details are outlined in the Key Investor Information Document (KIID) and prospectus, which are accessible through First Trust’s official channels and regulatory databases. Investors are advised to review these documents for full details on risks, including market risk, dividend sustainability risk, and the potential impact of the exclusionary screens on sector diversification and returns.

The introduction of this product reflects broader trends in the European ETF market, where demand for transparent, rules-based income strategies continues to grow. By focusing on companies with a proven ability to raise dividends over time while applying ESG-related exclusions, the fund targets investors seeking both income potential and alignment with certain sustainability principles.