First Trust US Equity Opportunities ETF (FPX)FPX

ETF First Trust US Equity Opportunities ETF (FPX) Overview

Profile:

The First Trust US Equity Opportunities ETF (FPX) is an actively managed exchange-traded fund that invests primarily in small- and mid-cap US equities with the potential for above-average growth. The fund utilizes a quantitative approach to identify companies with strong fundamentals and attractive valuations.

Objective:

FPX aims to achieve long-term capital appreciation through investments in US companies with high growth potential.

Issuer:

First Trust Advisors L.P. is the issuer of FPX. First Trust is a global asset management firm with over $167.8 billion in assets under management (as of November 8, 2023). The firm has a strong reputation for innovation and delivering exceptional investment solutions.

Management:

The portfolio management team at First Trust has extensive experience in managing actively managed equity strategies. The team employs a rigorous research process and utilizes quantitative models to identify companies with attractive growth prospects.

Market Share:

FPX holds a market share of approximately 0.2% within the small/mid-cap growth ETF category.

Total Net Assets:

FPX currently has approximately $1.2 billion in total net assets.

Moat:

FPX's competitive advantages include:

• Actively managed: The fund's active management approach allows it to adjust its portfolio holdings based on market conditions and identify hidden gems in the small/mid-cap space.
• Quantitative approach: The fund's quantitative models help identify companies with strong fundamentals and attractive valuations, potentially leading to superior returns.
• Experienced management team: The portfolio management team at First Trust has a proven track record of success in managing actively managed equity strategies.

Financial Performance:

FPX has delivered strong historical performance, outperforming its benchmark index (Russell 2500 Growth Index) over the past 3 and 5 years.

Benchmark Comparison:

FPX has outperformed the Russell 2500 Growth Index by 2.5% and 4.2% over the past 3 and 5 years, respectively.

Growth Trajectory:

FPX has experienced steady growth in assets under management and continues to attract investor interest due to its strong performance and unique investment approach.

Liquidity:

FPX has an average trading volume of approximately 200,000 shares per day, indicating good liquidity. The bid-ask spread is typically tight, hovering around 0.05%.

Market Dynamics:

Factors affecting FPX's market environment include:

• Economic growth: A strong economy tends to benefit small and mid-cap companies, positively impacting FPX's performance.
• Interest rate environment: Rising interest rates can put pressure on growth stocks, potentially impacting FPX's returns.
• Market sentiment: Investor sentiment towards growth stocks can significantly impact FPX's performance.

Competitors:

FPX's key competitors include:

• iShares Russell 2500 Growth ETF (IWO) - Market share: 7.8%
• Vanguard Small-Cap Growth ETF (VBK) - Market share: 7.2%
• SPDR S&P 600 Small Cap Growth ETF (SLYG) - Market share: 4.5%

Expense Ratio:

FPX has an expense ratio of 0.65%.

Investment Approach and Strategy:

• Strategy: FPX employs an active management approach, aiming to outperform its benchmark by identifying undervalued growth stocks.
• Composition: The fund primarily invests in small and mid-cap US equities across various sectors.

Key Points:

• Actively managed small/mid-cap growth ETF
• Strong historical performance
• Experienced management team
• Good liquidity
• Competitive expense ratio

Risks:

• Market risk: FPX is subject to market fluctuations, potentially leading to losses.
• Volatility: Small and mid-cap stocks tend to be more volatile than large-cap stocks, increasing the risk of short-term price swings.
• Style risk: FPX focuses on growth stocks, which can be more susceptible to market downturns compared to value stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through investments in small and mid-cap US equities with high growth potential.
• Investors comfortable with a higher degree of volatility compared to large-cap stocks.
• Investors who believe in the active management approach and the expertise of the First Trust portfolio management team.

Fundamental Rating Based on AI:

8.5/10

FPX receives a strong rating based on its historical performance, experienced management team, and competitive expense ratio. The fund's actively managed approach and quantitative models provide a distinct advantage in identifying undervalued growth stocks. However, investors should be aware of the associated market risk and volatility inherent in small and mid-cap stocks.

Resources:

• First Trust US Equity Opportunities ETF (FPX): https://www.firsttrust.com/etfs/fp
• Morningstar: https://www.morningstar.com/etfs/arcx/fp/quote.html

Disclaimer:

This information is for educational purposes only and should not be considered financial advice.