First Trust Growth Strength ETF (FTGS)FTGS

ETF First Trust Growth Strength ETF (FGX) Summary

Profile:

The First Trust Growth Strength ETF (FGX) is an actively managed exchange-traded fund that invests in large-cap U.S. growth stocks. It focuses on companies with strong fundamentals, positive earnings revisions, and high momentum. The ETF employs a quantitative methodology to select its holdings, aiming to outperform the S&P 500 Growth Index.

Objective:

FGX's primary investment goal is to achieve long-term capital appreciation by investing in a portfolio of high-quality growth stocks.

Issuer:

First Trust Advisors L.P. is the issuer of FGX.

• Reputation and Reliability: First Trust Advisors is a well-established and reputable asset management firm with over $200 billion in assets under management. The firm has a strong track record of managing actively managed ETFs.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and stock selection.

Market Share:

FGX has a market share of approximately 0.25% in the large-cap growth ETF category.

Total Net Assets:

As of November 10, 2023, FGX has approximately $2.5 billion in total net assets.

Moat:

• Active Management: FGX's active management approach allows the portfolio managers to select stocks that are not included in the benchmark index, potentially leading to superior performance.
• Quantitative Methodology: The ETF's quantitative methodology helps to identify high-quality growth stocks with strong fundamentals and positive momentum.

Financial Performance:

FGX has outperformed the S&P 500 Growth Index since its inception in 2017. The ETF has returned an average of 18.5% annually, compared to 15.2% for the index.

Growth Trajectory:

The growth prospects for FGX are positive, given the continued strength of the U.S. economy and the favorable outlook for large-cap growth stocks.

Liquidity:

FGX has an average daily trading volume of over 200,000 shares, making it a highly liquid ETF. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting FGX's market environment include:

• Economic Growth: A strong U.S. economy is positive for growth stocks.
• Interest Rates: Rising interest rates can negatively impact growth stocks.
• Market Volatility: Increased market volatility can lead to increased volatility in FGX's share price.

Competitors:

• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

FGX has an expense ratio of 0.60%.

Investment Approach and Strategy:

• Strategy: FGX actively manages its portfolio to outperform the S&P 500 Growth Index.
• Composition: The ETF invests primarily in large-cap U.S. growth stocks across various sectors.

Key Points:

• Actively managed ETF with a focus on high-quality growth stocks.
• Strong track record of outperforming the S&P 500 Growth Index.
• High liquidity and low expense ratio.
• Suitable for investors seeking long-term capital appreciation.

Risks:

• Market Risk: FGX is subject to market risk, including the risk of loss due to market downturns.
• Volatility: The ETF's share price can be volatile, especially during periods of market turmoil.
• Active Management Risk: The ETF's performance is dependent on the success of its active management strategy.

Who Should Consider Investing:

FGX is suitable for investors with a long-term investment horizon who are comfortable with the risks associated with investing in growth stocks.

Fundamental Rating Based on AI:

Based on an AI-based analysis of FGX's financial health, market position, and future prospects, the ETF receives a Fundamental Rating of 8 out of 10.

Disclaimer:

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

Resources:

• First Trust Growth Strength ETF website: https://www.ftportfolios.com/products/fgx
• ETF Database: https://etfdb.com/etf/FGX/
• Morningstar: https://www.morningstar.com/etfs/arcx/fgx