First Trust Capital Strength ETF (FTCS)

Overview

The First Trust Capital Strength ETF (FTCS) seeks investment results that correspond generally to the price and yield (before the Fundu2019s fees and expenses) of an equity index called the AlphaDEXu00ae Large Cap Core Index. The ETF aims to provide capital appreciation through investments in large-cap U.S. companies with strong financial fundamentals.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and a broad range of investment solutions.

Management Expertise

First Trust has a dedicated team of experienced investment professionals managing its ETFs, with a strong track record in quantitative and strategic investing.

Goal

To seek investment results that correspond generally to the price and yield of the AlphaDEXu00ae Large Cap Core Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the AlphaDEXu00ae Large Cap Core Index, which employs a quantitative methodology to select and weight stocks based on growth and value factors.

Composition The ETF primarily holds stocks of large-cap U.S. companies, focusing on those with strong financial fundamentals based on the AlphaDEX methodology.

Market Share: FTCS has a relatively small market share compared to other broad large-cap ETFs.

Total Net Assets (AUM): 1789939722

Key Competitors

• IVV
• SPY
• VOO

Competitive Landscape

The large-cap ETF market is dominated by a few major players like IVV, SPY and VOO. FTCS differentiates itself with its AlphaDEX methodology, which aims to outperform traditional market-cap weighted indexes. However, its higher expense ratio and less liquid options may be a disadvantage compared to more established and lower-cost competitors.

Historical Performance: Historical performance data is needed to assess the ETF's track record.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 and the AlphaDEX Large Cap Core Index.

Expense Ratio: 0.54

Average Trading Volume

The ETF's average trading volume indicates moderate liquidity, suggesting relatively easy buying and selling.

Bid-Ask Spread

The ETF typically has a moderate bid-ask spread, reflecting reasonable trading costs for investors.

Market Environment Factors

Economic indicators, interest rates, and sector-specific performance influence the performance of FTCS, given its large-cap focus.

Growth Trajectory

The ETF's growth is tied to the overall performance of large-cap U.S. equities and the effectiveness of its AlphaDEX selection process; changes in sector allocation are infrequent but can occur over time.

Competitive Edge

FTCS differentiates itself through its unique AlphaDEX methodology, which uses a quantitative approach to select and weight stocks based on growth and value factors. This strategy aims to outperform traditional market-cap weighted indexes by identifying companies with strong financial fundamentals. However, it comes at a higher expense ratio than standard index funds. The AlphaDEX methodology can potentially provide superior returns during periods of economic growth, but it may underperform during periods of market downturns or volatility.

Volatility

FTCS's volatility is expected to be similar to the broader large-cap market, but may vary depending on the specific holdings selected by the AlphaDEX methodology.

Market Risk

FTCS is subject to market risk, including fluctuations in stock prices and economic downturns. The sector allocation also introduces sector-specific risks.

Ideal Investor Profile

The ideal investor is one seeking capital appreciation through exposure to large-cap U.S. equities, and who is willing to accept a higher expense ratio in exchange for the potential outperformance of the AlphaDEX methodology.

Market Risk

FTCS may be suitable for long-term investors seeking capital appreciation, but active traders may find better liquidity and lower costs elsewhere.

The First Trust Capital Strength ETF (FTCS) offers exposure to large-cap U.S. equities using a unique AlphaDEX methodology that aims to outperform traditional market-cap weighted indexes. While it differentiates itself with its quantitative stock selection process, investors should consider its higher expense ratio and moderate liquidity. The ETF's performance is closely tied to the overall performance of large-cap equities and the effectiveness of its AlphaDEX strategy. It could be suitable for long-term investors looking for capital appreciation while accepting a premium for a differentiated investment strategy.

• RPV
• IWD
• VONV

Data Sources:

• First Trust
• ETF.com
• Morningstar
• etfdb.com

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Market share data is approximate and may vary depending on the source and date. Past performance is not indicative of future results.