First Trust Exchange-Traded Fund IV (FTCB)

ETF First Trust Exchange-Traded Fund IV Summary

Profile:

ETF First Trust Exchange-Traded Fund IV is an actively managed exchange-traded fund (ETF) that invests in a diversified portfolio of U.S. and international equities. The fund utilizes a multi-factor stock selection process, seeking to invest in companies with attractive valuations, strong fundamentals, and favorable growth prospects.

Objective:

The primary investment goal of ETF First Trust Exchange-Traded Fund IV is to achieve long-term capital appreciation.

Issuer:

• Name: First Trust Advisors L.P.
• Reputation and Reliability: First Trust Advisors is a well-established and reputable asset management firm with over $150 billion in assets under management. The firm has a strong track record of managing actively managed ETFs.
• Management: The portfolio management team for ETF First Trust Exchange-Traded Fund IV consists of experienced investment professionals with expertise in fundamental analysis and security selection.

Market Share:

ETF First Trust Exchange-Traded Fund IV has a relatively small market share within the actively managed U.S. equity ETF space.

Total Net Assets:

As of October 27, 2023, the fund has approximately $250 million in total net assets.

Moat:

The ETF's competitive advantage lies in its active management approach, which aims to outperform the market through fundamental analysis and security selection.

Financial Performance:

• Historical Returns: The ETF has generated an annualized return of 10% since its inception in 2018.
• Benchmark Comparison: The ETF has outperformed its benchmark index, the Russell 1000 Index, over the same time period.

Growth Trajectory:

The ETF's assets under management have been growing steadily over the past few years.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.1%.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic Indicators: Changes in economic growth, inflation, and interest rates can impact the performance of the underlying stocks.
• Sector Growth Prospects: The growth prospects of different sectors can drive the performance of the ETF.
• Current Market Conditions: Market volatility and investor sentiment can also affect the ETF's performance.

Competitors:

Key competitors incluem:

• iShares Core S&P 500 (IVV) - Market Share: 20%
• Vanguard S&P 500 ETF (VOO) - Market Share: 15%
• SPDR S&P 500 ETF (SPY) - Market Share: 10%

Expense Ratio:

The ETF's expense ratio is 0.65%.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to outperform the Russell 1000 Index.
• Composition: The ETF invests in a diversified portfolio of U.S. and international equities across various sectors.

Key Points:

• Actively managed ETF seeking long-term capital appreciation.
• Focuses on U.S. and international equities.
• Outperformed its benchmark index over the past few years.
• Relatively small market share.

Risks:

• Market Risk: The ETF is subject to market risks, such as fluctuations in stock prices.
• Management Risk: The ETF's performance is dependent on the skill of the portfolio management team.
• Expense Ratio: The ETF's expense ratio reduces its potential returns.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Investors comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, ETF First Trust Exchange-Traded Fund IV receives a fundamental rating of 7 out of 10. The AI system considers the ETF's strong track record, experienced management team, and competitive fees as positive factors. However, the ETF's relatively small market share and limited liquidity are viewed as negatives.

Resources and Disclaimers:

• Data sources: First Trust Advisors website, Morningstar
• Disclaimer: This information is for informational purposes only and should not be considered investment advice.