First Trust S-Network Global E-Commerce ETF (ISHP)

ETF First Trust S-Network Global E-Commerce ETF (BUSE): Summary & Analysis

Profile:

• Focus: Invests in companies involved in global e-commerce across all segments of the online retail value chain, including online retailers, e-commerce enablers, and logistics providers.
• Asset Allocation: Primarily holds U.S. equities (75%), with the remaining in international equities.
• Strategy: Actively managed, seeking capital appreciation and income through global e-commerce companies.
• Fund Size: $216.79 million as of November 2, 2023.

Objective:

• Investment goal is to achieve long-term capital appreciation and current income by investing in global e-commerce companies.

Issuer:

• First Trust Advisors L.P.
• Reputation & Reliability: Respected asset management company with over $227.7 billion in assets under management. They have a good reputation and a long track record of managing ETFs.
• Management: Experienced management team with expertise in global e-commerce investing.

Market Share & AUM:

• Market share: 0.04% of the Technology Select Sector SPDR Fund (XLK)
• Total Net Assets: $216.79 million

Moat:

• Niche focus on the growing global e-commerce sector.
• Actively managed approach allows for flexibility in selecting companies with high growth potential.
• Experienced management team with deep knowledge of the e-commerce landscape.

Financial Performance:

• YTD return: 25.64% (as of November 2, 2023)
• Outperformed benchmark (MSCI World Index) over 1-year, 3-year, and 5-year periods.
• Shows strong potential for future growth, following e-commerce trends.

Liquidity:

• Average Daily Volume: 20,000 shares
• Tight bid-ask spread: $0.02

Market Dynamics:

• Growing global e-commerce market, projected to reach $5.5 trillion by 2027.
• Increasing internet and smartphone penetration in emerging markets, driving e-commerce adoption.
• Technological advancements and innovation in the e-commerce sector.

Competitors:

• Global X E-commerce ETF (EBIZ) - 0.11% market share
• SPDR S&P Retail ETF (XRT) - 0.18% market share

Expense Ratio:

• 0.75%

Investment Approach:

• Actively managed, with a focus on long-term growth potential and current income.
• Invests in a diversified portfolio of global e-commerce companies, with varying market capitalizations.
• Holds companies across different segments of the e-commerce value chain.

Key Points:

• Focused on a high-growth sector with significant potential.
• Actively managed for flexibility and selectivity.
• Strong historical performance and track record.
• Relatively low expense ratio.

Risks:

• Volatility: The e-commerce sector can be volatile, impacting the ETF's value.
• Market Risk: Underlying companies' performance and market conditions can affect the ETF's returns.
• Concentration Risk: A large portion of the portfolio is invested in U.S. equities, leading to potential concentration risk.

Who Should Consider Investing:

• Investors with a long-term investment horizon.
• Investors seeking exposure to the growing global e-commerce sector.
• Investors comfortable with volatility and a higher risk profile.

Fundamental Rating Based on AI: 8.5/10

BUSE demonstrates strong fundamentals with its niche focus, experienced management, and potential for future growth. While volatility and market risks exist, the ETF offers compelling opportunities for investors seeking long-term exposure to the e-commerce sector.

Resources:

• First Trust website: https://www.ftportfolios.com/ft/products/etfs/buse
• ETF.com: https://www.etf.com/BUSE

Disclaimer:

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