First Trust Mid Cap US Equity Select ETF (RNMC)

First Trust Mid Cap US Equity Select ETF (FNX)

Profile:

FNX is an actively managed ETF that invests in mid-cap U.S. equities with a focus on quality growth stocks. It seeks to provide capital appreciation through a combination of stock selection and sector allocation.

Objective:

The primary objective of FNX is to outperform the S&P MidCap 400 Index by investing in a diversified portfolio of mid-cap growth stocks.

Issuer:

First Trust Portfolios LP is the issuer of FNX. It is a global asset management firm with over $173 billion in assets under management.

Market Share:

FNX has a market share of approximately 0.9% in the mid-cap growth ETF category.

Total Net Assets:

As of October 27, 2023, FNX has total net assets of approximately $1.2 billion.

Moat:

FNX's competitive advantages include:

• Active management: The ETF utilizes a team of experienced portfolio managers who actively research and select investments.
• Focus on quality growth companies: FNX invests in companies with strong fundamentals and growth potential.
• Diversification: The ETF holds a diversified portfolio of stocks across various sectors.

Financial Performance:

FNX has outperformed the S&P MidCap 400 Index over the past 3 and 5 years.

Growth Trajectory:

The mid-cap growth stock market is expected to continue to grow in the coming years, driven by strong economic fundamentals and corporate earnings growth.

Liquidity:

FNX has an average daily trading volume of approximately 150,000 shares. The bid-ask spread is typically around $0.05.

Market Dynamics:

The mid-cap growth stock market is affected by several factors, including economic growth, interest rates, and corporate earnings.

Competitors:

Key competitors of FNX include:

• iShares Russell Midcap Growth ETF (IWP)
• SPDR S&P MidCap 400 Growth ETF (MGK)
• Vanguard Mid-Cap Growth ETF (VOT)

Expense Ratio:

The expense ratio of FNX is 0.60%.

Investment Approach and Strategy:

FNX uses a bottom-up stock selection approach, focusing on companies with strong fundamentals and growth potential. The ETF invests primarily in mid-cap growth stocks across various sectors.

Key Points:

• Actively managed ETF focused on mid-cap growth stocks.
• Outperformed the S&P MidCap 400 Index over the past 3 and 5 years.
• Diversified portfolio with a focus on quality companies.
• Competitive expense ratio.

Risks:

The main risks associated with FNX include:

• Market risk: The ETF's performance is dependent on the overall performance of the stock market.
• Interest rate risk: Rising interest rates can negatively impact the growth prospects of mid-cap companies.
• Sector concentration risk: The ETF's focus on the technology sector makes it vulnerable to sector-specific risks.

Who Should Consider Investing:

Investors who are looking for capital appreciation and are comfortable with the risks associated with mid-cap growth stocks should consider FNX.

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Fundamental Rating Based on AI - 7.5/10

Strengths:

• Strong historical performance.
• Experienced management team.
• Diversified portfolio.
• Competitive expense ratio.

Weaknesses:

• Concentration in the technology sector.
• Subject to market risk.

Overall, FNX appears to be a well-managed ETF with a strong track record. However, investors should be aware of the risks associated with the ETF before investing.

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Resources and Disclaimers:**

• First Trust website: https://www.ftportfolios.com/
• ETF Database: https://etfdb.com/
• Morningstar: https://www.morningstar.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before investing in any ETF.