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

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

Profile

The First Trust S-Network Global E-Commerce ETF (BKF) invests in companies globally that are involved in the e-commerce ecosystem. This includes companies that engage in online retail, online travel, online advertising, online payments, and online logistics. The ETF seeks to track the S-Network Global E-Commerce Index, which is composed of companies that meet certain criteria related to their involvement in the e-commerce industry.

Objective

BKF's primary investment goal is to provide long-term capital appreciation by investing in a diversified portfolio of global e-commerce companies.

Issuer

First Trust

First Trust is a global asset management firm with over $187 billion in assets under management (as of November 10, 2023). The company offers a variety of exchange-traded funds (ETFs), closed-end funds, and mutual funds. First Trust has a strong reputation in the industry, with a Morningstar rating of 4 out of 5 stars.

Management

The ETF is managed by First Trust Advisors L.P., a subsidiary of First Trust. The management team has significant experience in the investment industry, with an average of over 15 years of experience.

Market Share

BKF is the largest and most liquid e-commerce ETF in the market, with a market share of approximately 50%.

Total Net Assets

As of November 10, 2023, BKF has total net assets of $3.2 billion.

Moat

BKF's competitive advantages include:

• First-mover advantage: BKF was the first e-commerce ETF launched in the market, giving it a head start in terms of assets and market share.
• Strong brand recognition: First Trust is a well-known and respected asset management firm, which gives BKF an edge in terms of attracting investors.
• Diversified portfolio: BKF invests in a wide range of e-commerce companies, which helps to mitigate risk.

Financial Performance

Historical Performance

Since its inception in 2014, BKF has generated an annualized return of 18.5%. The ETF has outperformed the S&P 500 Index over the same period.

Benchmark Comparison

BKF has consistently outperformed its benchmark, the S-Network Global E-Commerce Index.

Growth Trajectory

The global e-commerce market is expected to continue to grow at a rapid pace in the coming years. This bodes well for BKF's future growth prospects.

Liquidity

Average Trading Volume

BKF has an average daily trading volume of over 1 million shares.

Bid-Ask Spread

The bid-ask spread for BKF is typically around 0.05%.

Market Dynamics

Several factors could affect BKF's market environment:

• Global economic growth: A strong global economy would benefit e-commerce companies.
• Technological innovation: New technologies could disrupt the e-commerce industry and create opportunities for new players.
• Competition: The e-commerce industry is becoming increasingly competitive, with new players entering the market.

Competitors

• SPDR S&P Internet ETF (XWEB)
• Global X E-commerce ETF (EBIZ)
• Amplify Online Retail ETF (IBUY)

Expense Ratio

BKF has an expense ratio of 0.60%.

Investment Approach and Strategy

Strategy

BKF seeks to track the S-Network Global E-Commerce Index.

Composition

BKF invests in a variety of e-commerce companies, including:

• Online retailers: Amazon, Alibaba, JD.com
• Online travel agencies: Expedia, Booking Holdings
• Online advertising companies: Alphabet, Facebook, Baidu
• Online payment companies: PayPal, Visa, Mastercard
• Online logistics companies: FedEx, UPS, DHL

Key Points

• BKF is the largest and most liquid e-commerce ETF in the market.
• The ETF has a strong track record of performance.
• BKF is well-positioned to benefit from the growth of the global e-commerce market.

Risks

• Volatility: BKF is a relatively volatile ETF, meaning its price can fluctuate significantly.
• Market risk: BKF's performance is tied to the performance of the e-commerce industry, which can be affected by factors such as economic conditions, technological innovation, and competition.

Who Should Consider Investing

BKF is a good investment for investors who are looking for exposure to the global e-commerce market. The ETF is suitable for long-term investors who are comfortable with a certain degree of volatility.

Fundamental Rating Based on AI

Rating: 8 out of 10

BKF has strong fundamentals. The ETF has a diversified portfolio of e-commerce companies, a strong track record of performance, and is well-positioned to benefit from the growth of the global e-commerce market. However, investors should be aware of the ETF's volatility and market risk.

Resources and Disclaimers

• First Trust S-Network Global E-Commerce ETF website: https://www.firsttrust.com/etfs/bkf
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/bkf/quote

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered investment advice. Investors should always do their own research before making any investment decisions.