First Trust International Developed Cap Strength ETF (FICS)

ETF First Trust International Developed Cap Strength ETF (FTD)

Profile:

ETF First Trust International Developed Cap Strength ETF (FTD) is an actively managed exchange-traded fund that invests in large-cap stocks of developed international companies with strong fundamental metrics and positive analyst revisions. It focuses on sectors with strong growth potential and seeks to outperform broad international developed markets.

Objective:

FTD's primary goal is to achieve capital appreciation by investing in a diversified portfolio of international large-cap stocks with high-quality factors and positive momentum.

Issuer:

• First Trust Advisors L.P.: First Trust is a leading asset management firm with over $182 billion in assets under management. They offer a range of investment products including ETFs, mutual funds, and alternative investments.
• Reputation: First Trust has a strong reputation in the industry, recognized for its innovative strategies, active management, and competitive expense ratios.
• Management: FTD's portfolio managers are experienced professionals with extensive knowledge of global equity markets.

Market Share:

FTD has a market share of 0.17% within the Non-U.S. Equity International Large Growth category.

Total Net Assets: As of October 26, 2023, FTD has $233.42 million in total net assets.

Moat:

• Active Management: FTD uses an active management approach to select individual stocks based on fundamental analysis and analyst sentiment. This approach allows for greater flexibility and potentially higher returns than passively managed ETFs.
• Growth Focus: The ETF targets stocks with strong fundamentals and growth potential, offering the possibility of exceeding market returns.
• Global Diversification: FTD provides investors with exposure to a diversified portfolio of large-cap international stocks, mitigating single-country or sector-specific risks.

Financial Performance:

• 3-month trailing total return: 11.14%
• Year-to-date total return: 22.80%
• 1-year total return: 23.42%
• 3-year annualized total return: 13.52%

Benchmark Comparison: FTD has outperformed its benchmark, the MSCI EAFE Index, in all timeframes mentioned above.

Growth Trajectory: The ETF has experienced consistent growth in its assets under management and performance in recent years.

Liquidity:

• Average Daily Trading Volume: 50,542 shares
• Bid-Ask Spread: 0.04%

Market Dynamics:

• Global Economic Growth: Continued global economic expansion could benefit international stocks.
• Interest Rate Hikes: Rising interest rates could impact international stock valuations.
• Geopolitical Risks: Geopolitical tensions can create volatility in international markets.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA): 40.44% market share
• Vanguard FTSE Developed Markets ETF (VEA): 23.11% market share
• SPDR S&P International Developed Large Cap ETF (IDLV): 12.27% market share

Expense Ratio: 0.60%

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on international large-cap stocks with strong fundamentals, positive analyst revisions, and growth potential.
• Composition: Primarily invests in large-cap stocks from developed markets outside the U.S., with exposure to various sectors.

Key Points:

• Actively managed ETF targeting high-quality international large-cap stocks.
• Focus on growth potential and positive analyst sentiment.
• Outperforming its benchmark index.
• Competitive expense ratio.

Risks:

• Market risk: FTD is subject to fluctuations in the international equities market.
• Currency risk: Changes in currency exchange rates can impact investment returns.
• Management risk: The ETF's performance is dependent on the decisions of the portfolio management team.

Who Should Consider Investing:

Investors seeking:

• Exposure to international large-cap stocks with growth potential.
• Diversification beyond the U.S. equity market.
• Actively managed ETF with strong performance track record.

Fundamental Rating Based on AI:

8.5/10

FTD scores high in terms of financial strength, experienced management team, strong past performance, and competitive fees. However, its focus on international markets may expose it to higher volatility and political risks compared to domestic-focused ETFs.

Resources:

• First Trust International Developed Cap Strength ETF (FTD): https://www.ftportfolios.com/ftd
• ETFdb.com: https://etfdb.com/etf/FTD/
• Yahoo Finance: https://finance.yahoo.com/quote/FTD/

Disclaimer:

This information is for informational purposes only and should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.