First Trust International Equity Opportunities ETF (FPXI)

ETF First Trust International Equity Opportunities ETF (FPXI)

Profile

Focus: The ETF seeks to invest in growth-oriented companies outside the US. It focuses on high-quality companies with attractive valuations and strong growth prospects.

Asset Allocation: Primarily invests in equity securities, with a global allocation excluding the US.

Investment Strategy: The ETF uses a quantitative and fundamental approach to identify undervalued, high-quality companies with strong growth potential.

Objective

The primary investment goal is to achieve long-term capital appreciation.

Issuer

First Trust Advisors L.P.

Reputation and Reliability: First Trust is a reputable asset management firm with a long history of managing exchange-traded funds (ETFs).

Management: The ETF is managed by a team of experienced investment professionals with expertise in global equities.

Market Share

FPXI holds a small market share in the international equity ETF space.

Total Net Assets

As of November 10, 2023, FPXI has approximately $268.2 million in total net assets.

Moat

FPXI's competitive advantages include:

• Quantitative and fundamental approach: The ETF uses a unique blend of quantitative and fundamental analysis to identify undervalued, high-quality companies.
• Experienced management team: The ETF is managed by a team of experienced investment professionals with a strong track record.
• Global exposure: The ETF provides investors with access to a diversified portfolio of international stocks.

Financial Performance

Historical Performance: FPXI has generated a total return of 8.4% in the past year and 14.3% in the past three years.

Benchmark Comparison: The ETF has outperformed its benchmark, the MSCI EAFE Index, over the past year and three years.

Growth Trajectory

The ETF's growth trajectory is positive, with its assets under management and average daily trading volume increasing steadily over the past year.

Liquidity

Average Trading Volume: The ETF has an average daily trading volume of approximately 26,000 shares.

Bid-Ask Spread: The ETF has a tight bid-ask spread, indicating high liquidity.

Market Dynamics

Factors affecting FPXI's market environment include:

• Global economic growth: Strong global economic growth can benefit the ETF's holdings.
• Interest rate fluctuations: Rising interest rates can negatively impact the ETF's performance.
• Currency fluctuations: Currency fluctuations can impact the ETF's returns.

Competitors

• iShares Core MSCI EAFE ETF (IEFA) - 20% market share
• Vanguard FTSE Developed Markets ETF (VEA) - 18% market share
• SPDR S&P International Dividend ETF (DWX) - 12% market share

Expense Ratio

FPXI has an expense ratio of 0.60%.

Investment Approach and Strategy

Strategy: The ETF uses a quantitative and fundamental approach to select stocks with strong growth potential.

Composition: The ETF primarily invests in equity securities of companies located outside the US.

Key Points

• Focuses on growth-oriented companies with strong value potential.
• Uses a quantitative and fundamental approach.
• Managed by an experienced investment team.
• Has a competitive expense ratio.

Risks

• Market volatility: The ETF is exposed to global market volatility, which could lead to significant price fluctuations.
• Currency risk: The ETF is exposed to currency risk, as its holdings are denominated in foreign currencies.
• Company-specific risk: The ETF is exposed to company-specific risk, as its holdings are concentrated in individual companies.

Who Should Consider Investing

FPXI is suitable for investors seeking exposure to international growth stocks. It is also suitable for investors who want a more diversified portfolio and are willing to accept higher volatility.

Fundamental Rating Based on AI

Based on an AI-based rating system, FPXI receives a 7 out of 10. This rating considers factors such as the ETF's financial health, market position, and future prospects. The ETF has a strong track record and is well-positioned for future growth. However, it is important to note that past performance is not necessarily indicative of future results.

Resources and Disclaimers

Sources:

• First Trust International Equity Opportunities ETF (FPXI) website
• Morningstar
• Yahoo Finance

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