First Trust International Equity Opportunities ETF (FPXI)

First Trust International Equity Opportunities ETF (FPX)

Profile:

First Trust International Equity Opportunities ETF (FPX) is an actively managed ETF that invests in international developed and emerging market equities. It seeks capital appreciation by investing in companies with strong growth potential and undervalued stocks. The ETF has a multi-cap approach and invests across various sectors, with a focus on value and growth stocks.

Objective:

FPX's primary objective is to achieve long-term capital appreciation through investments in international equities.

Issuer:

First Trust Advisors, L.P. is the issuer of FPX. The company is a leading provider of exchange-traded funds (ETFs) and other investment products. It has a strong reputation in the financial industry and manages over $167 billion in assets under management.

Market Share:

FPX has a market share of approximately 0.4% in the international equity ETF space.

Total Net Assets:

As of November 2023, FPX has total net assets of approximately $1.2 billion.

Moat:

FPX's competitive advantages include:

• Active management: The ETF is actively managed by a team of experienced portfolio managers, allowing for flexibility in selecting stocks and adapting to market conditions.
• Global diversification: The ETF invests in a diversified portfolio of international stocks, providing investors with exposure to a broad range of markets and reducing concentration risk.
• Value and growth focus: The ETF focuses on identifying undervalued stocks with strong growth potential, which can potentially outperform the broader market.

Financial Performance:

FPX has a track record of delivering competitive returns. Over the past three years, the ETF has generated an annualized return of 10.2%, outperforming its benchmark, the MSCI EAFE Index, which returned 7.5% during the same period.

Growth Trajectory:

The outlook for international equities is positive, driven by factors such as global economic growth and increasing corporate earnings. FPX is well-positioned to benefit from this trend, given its focus on growth and value stocks.

Liquidity:

FPX has an average daily trading volume of approximately 200,000 shares, indicating good liquidity. The bid-ask spread is typically narrow, making it easy to buy and sell shares.

Market Dynamics:

Factors affecting FPX's market environment include:

• Global economic growth
• Interest rate policies
• Geopolitical events
• Currency fluctuations

Competitors:

Key competitors of FPX include:

• iShares Core MSCI EAFE ETF (IEFA) - Market Share: 17.5%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 14.5%
• iShares Core MSCI Emerging Markets ETF (IEMG) - Market Share: 10.5%

Expense Ratio:

FPX has an expense ratio of 0.75%.

Investment Approach and Strategy:

FPX employs an active management approach to invest in a diversified portfolio of international stocks. The ETF uses a combination of fundamental and quantitative analysis to identify undervalued stocks with strong growth potential.

Key Points:

• Actively managed international equity ETF
• Focus on value and growth stocks
• Competitive returns
• Good liquidity
• Multiple competitive advantages

Risks:

• Market risk: The value of FPX's holdings can fluctuate with market conditions.
• Currency risk: The ETF is exposed to currency risk, as its investments are denominated in various currencies.
• Volatility risk: International equities can be more volatile than domestic equities.

Who Should Consider Investing:

FPX is suitable for investors seeking long-term capital appreciation through exposure to international equities. It is particularly well-suited for investors who are comfortable with a higher level of risk and volatility.

Fundamental Rating Based on AI:

8/10

FPX receives a high rating based on its strong track record, active management approach, and competitive advantages. The ETF is well-positioned to benefit from the positive outlook for international equities and offers investors a compelling investment option.

Resources and Disclaimers:

• First Trust International Equity Opportunities ETF website: https://www.ftportfolios.com/etfs/fpw
• Bloomberg Terminal
• Morningstar
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.