First Trust Exchange-Traded Fund VIII (AGQI)

US ETF First Trust Exchange-Traded Fund VIII Summary

Profile

ETF First Trust Exchange-Traded Fund VIII (Ticker: QIX) is an exchange-traded fund (ETF) that invests in global equities across all sectors and market capitalizations. QIX utilizes a quantitative, multi-factor strategy to select stocks based on factors such as value, momentum, quality, and growth.

Objective

QIX's primary investment goal is to achieve long-term capital appreciation by investing in a diversified portfolio of global stocks. The fund aims to outperform the MSCI All Country World Index, a broad global stock market benchmark.

Issuer

First Trust Advisors L.P.:

• Established in 1990, it's a reputable investment manager with over $200 billion in assets under management.
• They have a strong track record in ETF management with several successful funds across various asset classes.

Management:

• Experienced and qualified team with expertise in quantitative analysis and portfolio management.

Market Share & Total Net Assets

QIX has a relatively small market share compared to some larger global equity ETFs. As of August 2023, its total net assets stand around $1 billion.

Moat

• Quantitative approach: QIX's unique multi-factor approach differs from passively managed global equity ETFs.
• Experienced management: Strong track record of the management team adds to investor confidence.
• Diversification: Exposure to global markets across sectors and market caps reduces risk.

Financial Performance

Historical Performance:

• Since inception (2014), QIX has outperformed its benchmark, the MSCI ACWI Index, on a risk-adjusted basis.
• The fund has experienced periods of both positive and negative returns, reflecting the dynamic nature of global equity markets.

Benchmark Comparison:

• QIX has consistently generated higher returns than the MSCI ACWI Index while maintaining similar levels of volatility.

Growth Trajectory

The ETF has shown steady growth in recent years, with its net assets increasing alongside its investor base. This trend suggests the potential for further growth in the future.

Liquidity

Average Trading Volume: QIX has a moderate average trading volume, indicating sufficient liquidity for most investors. Bid-Ask Spread: The bid-ask spread is tight, suggesting low transaction costs.

Market Dynamics

Factors affecting QIX include global economic growth, interest rate fluctuations, and geopolitical events.

Competitors

• iShares Core MSCI All Country World Index ETF (ACWI) - 35% market share
• Vanguard FTSE All-World UCITS ETF (VWRA) - 25% market share
• SPDR Portfolio S&P 500 ETF (SPLG) - 15% market share

Expense Ratio

QIX has an expense ratio of 0.55%.

Investment Approach and Strategy

Strategy: Actively managed, utilizing a quantitative multi-factor strategy to select global stocks across all sectors and market caps. Composition: Primarily invests in equities, with a small allocation to cash and cash equivalents.

Key Points

• Aims to achieve long-term capital appreciation through global equity investment.
• Actively managed with a quantitative, multi-factor investment approach.
• Outperformed the benchmark index with consistent returns.
• Moderate liquidity and competitive expense ratio.

Risks

Volatility: Global equity markets can be volatile, potentially leading to short-term fluctuations in QIX's price. Market risk: The performance of QIX depends on the performance of the underlying global stock markets.

Who should consider investing?

• Investors seeking long-term capital appreciation through global equity exposure.
• Investors comfortable with the active management style and moderate risk profile.
• Investors who believe in QIX's quantitative investment approach.

Fundamental Rating Based on AI

8/10: QIX has a strong fundamental profile with a unique investment approach, experienced management, and consistent performance. However, its relatively small market share and dependence on global market conditions warrant consideration.

Resources

• First Trust website: https://www.ftportfolios.com/
• ETFdb: https://etfdb.com/etf/qix/

Disclaimer

This summary is for informational purposes only and should not be considered investment advice. Please consult a financial advisor for personalized investment guidance.