In response to the evolving smart grid and electric infrastructure sector, the NASDAQ OMX Group, Inc., Clean Edge, Inc. and First Trust Advisors L.P. have launched a new exchange traded fund, or “ETF”. 

The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund, or “GRID,” based on the NASDAQ Clean Edge Smart Grid Infrastructure Index, or “QGRD,” is designed to correspond to the price and yield performance of the index on which it is based. 

NASDAQ OMX Executive Vice President, John Jacobs said that First Trust has filled the need for an investment product based on an index that has brought sharper focus to an industry that is transforming our nation's energy grid.

“This ETF reflects First Trust's commitment to extending its suite of products to broaden investor choice,” Jacobs said.

QGRD, which the GRID is based from, is a modified market-capitalization index and includes companies that are primarily involved in electric grid, electric meters, devices and networks, energy storage and management and enabling software used by the smart grid and electric infrastructure sector. 

“This is the first ETF to track a smart grid and electric infrastructure index,” Ron Pernick, Clean Edge co-founder and managing director, said. “First Trust continues to demonstrate leadership and to build a strong presence in the clean-energy sector.” 

Comprised of companies that are screened by Clean Edge, the GRID is calculated in real-time across the combined exchanges and is disseminated by NASDAQ OMX in U.S. Dollars.

Ryan Issakainen, vice president, Exchange-Traded Fund Strategist for First Trust Portfolios, said that, with a growing demand for electricity and the increasingly inefficient infrastructure, the current power grid is unable to keep up with the twenty first century technology.

“There's a growing movement towards a next generation power grid - Smart Grid,” Issakainen said. “Electricity is one of the largest and most capital intensive sectors in our economy and we are tremendously excited about the potential that this industry represents.”