First Trust Exchange-Traded Fund VIII (AGQI)AGQI

First Trust Active Global Quality Income ETF (FNIL)

Profile:

FNIL is an actively managed ETF that invests in global equity securities with a focus on dividend-paying companies. The ETF aims to provide investors with a high level of current income and long-term capital appreciation. It has approximately 60% of its assets invested in developed markets and 40% in emerging markets.

Objective:

FNIL's primary goal is to generate a high level of current income through dividend payments and achieve long-term capital growth potential by investing in high-quality companies globally.

Issuer:

First Trust Advisors, L.P. is the issuer of FNIL. It is a leading asset manager with over $214 billion in assets under management as of October 26, 2023. The firm boasts a strong reputation in the industry, having received various accolades, including Lipper Fund Awards and Morningstar Analyst Ratings.

Market Share:

FNIL occupies a small portion of the global dividend income ETF market, accounting for roughly 0.5% of the total assets.

Total Net Assets:

As of October 26, 2023, FNIL has approximately $772 million in total net assets.

Moat:

FNIL's primary competitive advantage lies in its active management approach. The experienced portfolio management team utilizes a rigorous selection process to identify companies with strong fundamentals, attractive dividend yields, and a history of dividend growth. Additionally, the ETF's global exposure offers diversification benefits.

Financial Performance:

Since its inception in February 2022, FNIL has delivered a total return of 7.62%. This compares favorably to its benchmark index, MSCI ACWI High Dividend Yield Index, which returned 4.95% over the same period.

Growth Trajectory:

The global dividend income ETF market is expected to continue growing in the coming years, driven by factors such as the aging population and increasing demand for income-generating investments. FNIL is well-positioned to benefit from this trend with its differentiated strategy.

Liquidity:

FNIL's average daily trading volume is approximately 7,500 shares, making it a relatively liquid ETF. The bid-ask spread is tight, averaging around 0.02%.

Market Dynamics:

Market factors affecting FNIL include global economic growth, interest rate fluctuations, and changes in investor sentiment towards dividend-paying stocks.

Competitors:

Key competitors in the same market segment include SPDR S&P Global Dividend ETF (WDIV), iShares Global Dividend ETF (IXJ), and Vanguard Global Dividend Opportunity ETF (VDOG).

Expense Ratio:

FNIL's expense ratio is 0.75%, which is in line with other actively managed global dividend income ETFs.

Investment Approach and Strategy:

FNIL employs a combination of fundamental and quantitative analysis to select its holdings. The portfolio managers focus on companies with strong financial performance, sustainable dividend payouts, and attractive valuations. The ETF holds a diversified portfolio of stocks across various sectors and countries.

Key Points:

• Actively managed ETF with a focus on global high-quality dividend-paying companies.
• Strong historical performance compared to its benchmark.
• Experienced and reputable management team.
• Competitive expense ratio.

Risks:

• Market volatility risk, including potential declines in global stock markets.
• Dividend income fluctuations, which could impact total returns.
• Foreign currency risk associated with its global investments.

Who Should Consider Investing:

FNIL is suitable for income-seeking investors with a long-term investment horizon who are comfortable with moderate market volatility.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, FNIL receives a preliminary AI-based fundamental rating of 8.5 out of 10. This indicates a strong overall profile with promising potential. However, it is essential to conduct further research and consider individual investment circumstances before making any investment decisions.

Resources and Disclaimers:

This analysis utilizes information from First Trust's website, Morningstar, and Bloomberg. The information provided is for general knowledge and educational purposes only and does not constitute financial advice. Individual investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.