First Trust RBA American Industrial RenaissanceTM ETF (AIRR)

Overview

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) seeks to track the performance of the Richard Bernstein Advisors American Industrial Renaissance Index. It focuses on investing in companies that may benefit from the renaissance of manufacturing and production in the United States.

Reputation and Reliability

First Trust is a well-known and established ETF provider with a solid track record.

Management Expertise

First Trust has a team of experienced investment professionals managing its ETFs.

Goal

To seek investment results that correspond generally to the price and yield, before fees and expenses, of the Richard Bernstein Advisors American Industrial Renaissance Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Richard Bernstein Advisors American Industrial Renaissance Index.

Composition The ETF holds primarily stocks of U.S. companies that are expected to benefit from the resurgence of manufacturing in the United States.

Market Share: AIRR's market share in the industrial ETF sector is relatively small compared to larger, more diversified industrial ETFs.

Total Net Assets (AUM): 160850000

Key Competitors

• Industrial Select Sector SPDR Fund (XLI)
• Vanguard Industrials ETF (VIS)
• iShares U.S. Industrials ETF (IYJ)

Competitive Landscape

The industrial ETF market is dominated by large, broad-based ETFs like XLI and VIS. AIRR differentiates itself by focusing on the 'American Industrial Renaissance,' which is a narrower investment theme. AIRR's advantage is its targeted approach, but its disadvantage is the potentially lower diversification compared to broader industrial ETFs. AIRR may outperform when US manufacturing is in favor, but underperform if it's not.

Historical Performance: Historical performance varies based on the underlying index and market conditions. Refer to official fund factsheet for accurate data.

Benchmark Comparison: The ETF's performance is compared to the Richard Bernstein Advisors American Industrial Renaissance Index to gauge its effectiveness.

Expense Ratio: 0.7

Average Trading Volume

The average trading volume is moderate, which can affect ease of entry and exit for large positions.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and trading volume, potentially impacting trading costs.

Market Environment Factors

Economic indicators, manufacturing data, trade policies, and global economic conditions significantly influence the ETF.

Growth Trajectory

The growth trajectory depends on the resurgence of American manufacturing and the ETF's ability to capture related investment opportunities.

Competitive Edge

AIRR's competitive edge lies in its unique investment strategy that focuses on the resurgence of American manufacturing and production. This targeted approach differentiates it from broader industrial ETFs. It offers investors exposure to companies specifically benefiting from the 'American Industrial Renaissance' theme. This focused strategy can potentially lead to outperformance when the US manufacturing sector is strong and in favor, although performance is very sensitive to the index methodology.

Volatility

Volatility is influenced by the volatility of the underlying stocks and the overall market conditions.

Market Risk

Market risk includes economic downturns, changes in trade policies, and fluctuations in manufacturing activity.

Ideal Investor Profile

The ideal investor is someone who believes in the resurgence of American manufacturing and seeks targeted exposure to that theme.

Market Risk

AIRR is suitable for investors with a medium to long-term investment horizon and a higher risk tolerance, seeking specific exposure to the U.S. industrial renaissance.

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) offers targeted exposure to U.S. companies expected to benefit from the resurgence of American manufacturing. It differentiates itself through its unique investment strategy, focusing on a specific theme within the industrial sector. AIRR's performance is highly dependent on the success of the American manufacturing renaissance. Investors should consider their risk tolerance and belief in this trend before investing, as its sector is vulnerable to market fluctuations.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.