First Trust US Equity Opportunities ETF (FPX)

First Trust US Equity Opportunities ETF (FPX)

Profile:

FPX is an actively managed ETF that seeks capital appreciation by investing in large and mid-cap US equities across various sectors. The portfolio managers employ a bottom-up stock selection approach, focusing on companies with strong fundamentals, attractive valuations, and potential for growth.

Objective:

The primary investment goal of FPX is to outperform the S&P 500 Index over the long term.

Issuer:

First Trust Advisors L.P. is the issuer of FPX.

Reputation and Reliability:

First Trust Advisors L.P. is a well-established asset management firm with a solid reputation in the industry. The firm has over $217 billion in assets under management and offers a diverse range of ETFs and mutual funds.

Management:

The portfolio management team of FPX has extensive experience in equity research and portfolio management. The team is led by Ryan Issakainen, who has over 20 years of experience in the financial industry.

Market Share:

FPX has a market share of approximately 0.08% within the Large Blend Equity ETF category.

Total Net Assets:

As of November 2023, FPX has $794.38 million in total net assets.

Moat:

FPX's competitive advantage lies in its experienced management team, active management approach, and focus on identifying undervalued companies with growth potential.

Financial Performance:

Since its inception in 2007, FPX has delivered an annualized return of 11.64%, outperforming the S&P 500 Index by 2.14% per year.

Benchmark Comparison:

FPX has consistently outperformed the S&P 500 Index over various timeframes, demonstrating the effectiveness of its active management strategy.

Growth Trajectory:

FPX has experienced steady growth in assets under management, indicating increasing investor interest in the ETF.

Liquidity:

FPX has an average daily trading volume of approximately 271,000 shares, indicating good liquidity.

Bid-Ask Spread:

The bid-ask spread for FPX is typically around 0.04%, which is considered tight for an actively managed ETF.

Market Dynamics:

Market dynamics that could affect FPX include economic growth, interest rate changes, and sector performance.

Competitors:

Key competitors of FPX include:

• IVV: iShares CORE S&P 500 (Market Share: 14.64%)
• SPY: SPDR S&P 500 ETF (Market Share: 13.27%)
• VOO: Vanguard S&P 500 ETF (Market Share: 12.79%)

Expense Ratio:

FPX has an expense ratio of 0.72%.

Investment Approach and Strategy:

FPX employs an active management approach, seeking undervalued companies with strong growth potential. The portfolio typically holds a concentrated basket of stocks across various sectors.

Key Points:

• Actively managed ETF focused on large and mid-cap US equities.
• Strong track record of outperforming the S&P 500 Index.
• Experienced management team with a proven investment process.
• Competitive expense ratio.

Risks:

• Volatility: FPX is an actively managed ETF, and its performance may be more volatile than the broader market.
• Market Risk: The ETF's performance is tied to the performance of its underlying holdings, which could be negatively impacted by market downturns.

Who Should Consider Investing:

FPX is suitable for investors seeking capital appreciation and outperformance potential over the long term. It is a good option for investors who are comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, FPX receives a Fundamental Rating of 8.5 out of 10. This rating reflects the ETF's strong track record, experienced management team, and attractive valuation.

Resources and Disclaimers:

• First Trust Website: https://www.ftportfolios.com/fp/product/fp-us-equity-opportunities-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/fp/quote.html
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.