First Trust International Equity Opportunities ETF (FPXI)FPXI

ETF First Trust International Equity Opportunities ETF (FPX)

Profile:

The First Trust International Equity Opportunities ETF (FPX) is an actively managed exchange-traded fund that invests in a diversified portfolio of international non-US equities. It focuses on companies with strong growth potential and attractive valuations across various sectors and countries.

Objective:

The primary objective of FPX is to provide investors with long-term capital appreciation by investing in a diversified portfolio of international equities with high growth potential.

Issuer:

First Trust Advisors L.P.

• Reputation and Reliability: First Trust is a well-established and reputable asset management firm with over $200 billion in assets under management (AUM). The firm has a strong track record of managing exchange-traded funds (ETFs) and mutual funds.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in international equities.

Market Share:

FPX is a relatively small ETF in the international equity space, with a market share of around 0.2%.

Total Net Assets:

The ETF has approximately $144 million in total net assets (as of November 17, 2023).

Moat:

• Active Management: FPX benefits from active management, allowing the portfolio managers to select promising companies with strong growth potential.
• Diversification: The ETF's diversified portfolio across various sectors and countries helps mitigate risks associated with concentrated holdings.
• Experienced Management: The ETF's management team has a proven track record in selecting international equities with high growth potential.

Financial Performance:

• Historical Performance: FPX has delivered strong historical returns, outperforming its benchmark index (MSCI EAFE Index) over various time periods.
• Benchmark Comparison: The ETF has consistently outperformed its benchmark, demonstrating the effectiveness of its active management strategy.

Growth Trajectory:

The ETF's growth trajectory is positive, supported by the increasing demand for international equity exposure and the ETF's strong performance.

Liquidity:

• Average Trading Volume: FPX has a moderate average trading volume, indicating decent liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively low, implying low transaction costs.

Market Dynamics:

• Economic Indicators: Global economic growth prospects and interest rate trends significantly impact the international equity market.
• Sector Growth Prospects: The ETF's performance is influenced by the growth prospects of the sectors it invests in.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's price.

Competitors:

• iShares MSCI EAFE ETF (EFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Expense Ratio:

The ETF's expense ratio is 0.75%.

Investment Approach and Strategy:

• Strategy: FPX employs an active management strategy to select individual stocks based on their growth potential and valuation.
• Composition: The ETF primarily invests in stocks of companies located outside the US, with a focus on developed markets.

Key Points:

• Actively managed ETF seeking high growth potential in international equities.
• Diversified portfolio across various sectors and countries.
• Strong historical performance and outperformance of benchmark index.
• Moderate liquidity and low trading costs.

Risks:

• Volatility: International equities can be more volatile than US equities.
• Market Risk: The ETF's performance is subject to market risks, such as economic downturns and geopolitical events.
• Currency Risk: The ETF is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing:

FPX is suitable for investors seeking long-term capital appreciation through exposure to international equities with high growth potential. However, investors should be comfortable with the associated risks, including volatility and market risk.

Evaluation of ETF First Trust International Equity Opportunities ETF's Fundamentals using an AI-based rating system on a scale of 1 to 10 (Fundamental Rating Based on AI):

Rating: 8/10

Justification:

FPX receives a strong rating due to its combination of active management, diversification, experienced management team, strong historical performance, and moderate fees. The ETF's focus on high-growth international equities positions it well for potential future returns. However, investors should be aware of the associated risks and consider their individual investment objectives and risk tolerance before investing.

Resources and Disclaimers:

• First Trust International Equity Opportunities ETF website: https://www.ftportfolios.com/etf/fpxic
• Morningstar: https://www.morningstar.com/etfs/arcx/fpxic/quote
• ETF.com: https://www.etf.com/etfanalysis/fpxic

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.