US firm,First Trust Advisors, is launching its AlphaDEX exchange traded funds in Europe. The UCITS funds will be listed on the Irish and London stock exchanges, subject to regulatory approval.

The firm says that these ETFs are designed to track the performance of a group of custom “enhanced” indices, while adding alpha through rules-based stock selection methodology. The stocks are ranked according to value and growth factors, rather than market capitalisation. The US-based family of AlphaDEX funds currently has about $4.6 billion in assets under management.

“These new ETFs are designed to provide investors with targeted equity market exposure whilst seeking to generate positive alpha relative to the broad-based passive index from which it selects its stocks. Every step in the process is driven by a transparent, repeatable quantitative process,” Eric Anderson, vice president for First Trust, said in a statement.