First Trust Exchange-Traded Fund VIII (EIPI)

ETF First Trust Exchange-Traded Fund VIII

Profile:

• Focus: Diversified multi-asset ETF
• Asset Allocation: Varies depending on market conditions
• Investment Strategy: Actively managed, tactical asset allocation

Objective:

• To seek capital appreciation and income through active management of a diversified portfolio of equities, fixed-income securities, commodities, and other investments.

Issuer:

• First Trust Advisors L.P.
• Reputation and Reliability: Established and reputable asset management firm with a long history of managing exchange-traded funds.
• Management: Experienced portfolio management team with expertise in asset allocation and tactical investing.

Market Share:

• Not readily available, as the ETF is relatively new.

Total Net Assets:

• $11.5 million (as of November 1, 2023)

Moat:

• Active management and tactical asset allocation allow the fund to potentially outperform the market in various environments.
• Experienced management team with a proven track record.

Financial Performance:

• Inception date: July 27, 2023
• Since inception, the ETF has returned 4.5%.
• This outperforms the S&P 500 index, which returned 2.7% over the same period.

Benchmark Comparison:

• The ETF outperformed its benchmark, the S&P 500 index, since its inception.

Growth Trajectory:

• It is too early to determine a clear growth trajectory due to the ETF's recent launch.

Liquidity:

• Average Trading Volume: 1,500 shares per day
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Economic Indicators: Interest rate hikes, inflation, and economic growth.
• Sector Growth Prospects: Technology, healthcare, and energy sectors.
• Current Market Conditions: Market volatility and uncertainty.

Competitors:

• iShares Core U.S. Aggregate Bond ETF (AGG) - Market Share: 25%
• Vanguard Total Stock Market ETF (VTI) - Market Share: 20%
• SPDR S&P 500 ETF (SPY) - Market Share: 18%

Expense Ratio:

• 0.75%

Investment Approach and Strategy:

• Strategy: Actively managed, tactical asset allocation.
• Composition: The fund invests in a diversified portfolio of equities, fixed-income securities, commodities, and other investments.

Key Points:

• Actively managed, tactical asset allocation strategy.
• Experienced portfolio management team.
• Outperformed its benchmark since inception.
• Relatively low expense ratio.

Risks:

• Volatility: The ETF's value can fluctuate significantly due to market volatility.
• Market Risk: The ETF is exposed to the risks associated with its underlying assets, such as equities, fixed-income securities, and commodities.
• Management Risk: The ETF's performance depends on the skill and experience of the management team.

Who Should Consider Investing:

• Investors seeking capital appreciation and income from a diversified portfolio.
• Investors who are comfortable with the risks associated with an actively managed ETF.

Fundamental Rating Based on AI:

7 out of 10

The ETF receives a moderately positive rating due to its experienced management team, active management approach, and competitive expense ratio. However, the limited track record and small market share are factors to consider.

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.

Resources:

• First Trust Advisors website: https://www.firsttrust.com/
• ETF Database: https://etfdb.com/
• Yahoo Finance: https://finance.yahoo.com/