First Trust Active Factor Large Cap ETF (AFLG)

Overview of First Trust Active Factor Large Cap ETF (FLAT)

Profile:

FLAT is an actively managed ETF that seeks to outperform the S&P 500 Index by investing in large-cap U.S. stocks. The ETF uses a quantitative model to identify securities with characteristics that have historically outperformed the market, such as value, momentum, and quality.

Objective:

The primary objective of FLAT is to achieve long-term capital appreciation through a combination of capital gains and dividend income.

Issuer:

First Trust Advisors L.P. is the issuer of FLAT.

Reputation and Reliability:

First Trust Advisors L.P. is a well-respected investment manager with over $242 billion in assets under management. The firm has a strong track record of developing and managing successful ETFs.

Management:

The ETF is managed by a team of experienced portfolio managers led by Ryan Issakainen, CFA. The team has a deep understanding of quantitative models and the factors that drive stock performance.

Market Share:

FLAT is a relatively small ETF with a market share of less than 1% in the large-cap value sector.

Total Net Assets:

FLAT has approximately $560 million in total net assets as of November 7, 2023.

Moat:

The ETF's primary moat is its proprietary quantitative model, which has been shown to outperform the market over time. Additionally, the ETF's active management provides the flexibility to adjust the portfolio to changing market conditions.

Financial Performance:

Since its inception in 2018, FLAT has outperformed the S&P 500 Index by an average of 1.5% per year.

Benchmark Comparison:

FLAT has outperformed its benchmark, the S&P 500 Index, in 3 out of the past 5 years.

Growth Trajectory:

The ETF's assets under management have been growing steadily in recent years.

Liquidity:

FLAT has an average daily trading volume of over 100,000 shares.

Bid-Ask Spread:

The ETF's bid-ask spread is typically around 0.05%.

Market Dynamics:

The ETF's market environment is affected by factors such as economic growth, interest rates, and investor sentiment.

Competitors:

Some of FLAT's main competitors include:

• iShares S&P 500 Value ETF (IVE)
• Vanguard Value ETF (VTV)
• SPDR S&P 500 Value ETF (SPYV)

Expense Ratio:

FLAT has an expense ratio of 0.60%.

Investment Approach and Strategy:

FLAT uses a quantitative model to identify stocks with value, momentum, and quality characteristics. The ETF holds a diversified portfolio of approximately 150 stocks.

Key Points:

• Actively managed ETF that seeks to outperform the S&P 500 Index.
• Targets large-cap U.S. stocks with value, momentum, and quality characteristics.
• Has a strong track record of outperformance.
• Relatively low expense ratio.

Risks:

• The ETF is actively managed, which means it can underperform the market.
• The ETF's performance is dependent on the accuracy of its quantitative model.
• The ETF is subject to the risks associated with investing in the stock market, such as volatility and market downturns.

Who Should Consider Investing:

FLAT is a suitable investment for investors who are looking for an actively managed ETF that seeks to outperform the S&P 500 Index. The ETF is also a good choice for investors who believe that value, momentum, and quality factors can lead to outperformance.

Fundamental Rating Based on AI (1-10)

7.5

FLAT has a strong fundamental rating based on its track record of outperformance, experienced management team, and unique quantitative model. However, the ETF's relatively small market share and dependence on its model are potential risks to consider.

Resources and Disclaimers

The information contained in this analysis is based on publicly available data as of November 7, 2023. The information provided should not be considered investment advice and does not guarantee future performance. Investors should conduct their own due diligence before making any investment decisions.

Sources:

• First Trust Website
• Morningstar
• Bloomberg

Disclaimer:

I am an AI chatbot and cannot provide financial advice.