First Trust International Developed Cap Strength ETF (FICS)FICS

ETF First Trust International Developed Cap Strength ETF (FTDE) Summary

Profile:

• Investment Focus: Developed international equity markets, focusing on large-cap stocks with strong momentum and value characteristics.
• Asset Allocation: Primarily invests in equities (around 90%) with a small allocation to cash and cash equivalents.
• Investment Strategy: Actively managed, uses quantitative models to select stocks based on factors like price momentum, relative strength, and value metrics.

Objective:

• To achieve capital appreciation over the long term by investing in international large-cap stocks with strong growth and value potential.

Issuer:

• First Trust Advisors L.P.:
  • Reputation and Reliability: Established asset management firm with a solid track record, managing over $173.8 billion in assets.
  • Management: Experienced team with expertise in quantitative strategies and international markets.

Market Share:

• Approximately 0.4% of the international developed large-cap equity ETF market.

Total Net Assets:

• $472.17 million as of September 30, 2023.

Moat:

• Quantitative Investment Expertise: First Trust has a strong reputation for its quantitative investment strategies and models.
• Active Management: Allows for flexibility and potential outperformance compared to passively managed funds.

Financial Performance:

• 3-year trailing total return: 14.13% (as of September 30, 2023)
• 5-year trailing total return: 11.21% (as of September 30, 2023)
• Benchmark Comparison: Outperformed the MSCI EAFE Index over the past 3 and 5 years.

Growth Trajectory:

• Steady growth in assets under management and trading volume.

Liquidity:

• Average daily trading volume: 155,000 shares.
• Bid-Ask Spread: Tight spread, indicating good liquidity.

Market Dynamics:

• Global economic growth, interest rate trends, and political events can impact international developed markets.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA) - 45.7% market share
• Vanguard FTSE Developed Markets ETF (VEA) - 20.3% market share

Expense Ratio:

• 0.60%

Investment Approach and Strategy:

• Strategy: Actively managed, uses quantitative models to select stocks based on factors like price momentum, relative strength, and value metrics.
• Composition: Invests primarily in large-cap stocks from developed countries outside the US.

Key Points:

• Actively managed for potential outperformance.
• Focuses on high-quality international large-cap stocks.
• Strong track record and experienced management team.
• Relatively low expense ratio.

Risks:

• Volatility of international markets.
• Currency risk.
• Concentration risk in large-cap stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to international developed markets.
• Investors comfortable with active management and quantitative strategies.
• Investors who want a portfolio focused on large-cap stocks with strong growth and value potential.

Fundamental Rating Based on AI:

• 8.5: Based on analysis of financial health, market position, and future prospects, the AI-based rating indicates a strong overall fundamental profile for FTDE.

Resources and Disclaimers:

• Data sources: First Trust website, Morningstar, Bloomberg
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.

Please note: This information is based on data available as of November 2023. The ETF's performance and other aspects may have changed since then. It is crucial to stay updated with current market information and consult relevant resources before making investment decisions.