First Trust RBA American Industrial RenaissanceTM ETF (AIRR)

Overview

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) seeks to track the performance of the Richard Bernstein Advisors American Industrial Renaissance Index. It focuses on U.S. companies benefiting from a potential resurgence in domestic manufacturing and industrial activity, with a focus on small and mid-cap companies. The ETF aims to capture the growth potential of companies involved in re-shoring, technological advancements, and increased capital spending within the U.S. industrial sector.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and offering specialized investment strategies.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing ETFs across various asset classes and investment styles. Richard Bernstein Advisors provides the index methodology.

Goal

The ETF's primary goal is to provide investment results that correspond generally to the price and yield of the Richard Bernstein Advisors American Industrial Renaissance Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Richard Bernstein Advisors American Industrial Renaissance Index, which employs a quantitative methodology to select and weight companies deemed to benefit from the American industrial renaissance.

Composition The ETF holds a basket of stocks, primarily small and mid-cap U.S. industrial companies. The fund may concentrate its investments in specific industries or sectors.

Market Share: AIRR holds a relatively small market share compared to broader industrial ETFs.

Total Net Assets (AUM): 156251297.53

Key Competitors

• Industrial Select Sector SPDR Fund (XLI)
• Vanguard Industrials ETF (VIS)
• iShares U.S. Industrials ETF (IYJ)

Competitive Landscape

The industrial ETF industry is dominated by large, broad-based funds like XLI and VIS. AIRR's competitive advantage lies in its focused investment strategy targeting the American industrial renaissance, which offers potentially higher growth but also increased risk. AIRR's focused approach differentiates it from broad-based industrial ETFs, but its niche focus may limit its appeal to some investors. The broad-based ETFs offer more diversification and potentially lower volatility.

Historical Performance: Historical performance data is available from the ETF's inception date. Investors should review past performance over various time periods (e.g., 1-year, 3-year, 5-year, 10-year, and since inception).

Benchmark Comparison: The ETF's performance should be compared to the Richard Bernstein Advisors American Industrial Renaissance Index to assess its tracking accuracy and to broader industrial indices like the S&P 500 Industrials Sector index.

Expense Ratio: 0.7

Average Trading Volume

AIRR's average trading volume is moderate, which may impact the ease of buying and selling shares, particularly for large orders.

Bid-Ask Spread

The bid-ask spread on AIRR is typically moderate and varies based on market conditions, indicating the cost of trading the ETF.

Market Environment Factors

Economic growth, government policies supporting domestic manufacturing, technological innovation, infrastructure spending, and global trade dynamics all affect the ETF's performance.

Growth Trajectory

The ETF's growth trajectory depends on the pace of the American industrial renaissance, the performance of small and mid-cap industrial companies, and the ETF's ability to accurately track its underlying index. Changes to the index methodology or the ETF's holdings could also affect its growth.

Competitive Edge

AIRR's competitive edge lies in its unique investment strategy focused on companies benefiting from the American industrial renaissance. This targeted approach distinguishes it from broad-based industrial ETFs. The Richard Bernstein Advisors American Industrial Renaissance Index aims to identify companies poised to benefit from re-shoring, technological innovation, and increased capital spending. This focus can lead to higher growth potential if the American industrial renaissance materializes. The ETF offers investors a targeted way to capitalize on this specific investment theme.

Volatility

AIRR's volatility may be higher than broad-based industrial ETFs due to its focus on small and mid-cap companies, which tend to be more volatile than large-cap stocks.

Market Risk

Market risk is inherent in the ETF's underlying assets, including fluctuations in industrial sector performance, economic cycles, and geopolitical events. Sector concentration risk and small-cap risk are also relevant.

Ideal Investor Profile

The ideal investor for AIRR is one who believes in the potential for a resurgence in American industrial manufacturing and is seeking targeted exposure to this theme. They should also be comfortable with the higher volatility associated with small and mid-cap companies.

Market Risk

AIRR is more suitable for long-term investors who are willing to accept higher risk for potentially higher returns. Active traders may also use the ETF to capitalize on short-term market trends within the industrial sector.

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) offers targeted exposure to U.S. small and mid-cap industrial companies expected to benefit from a resurgence in domestic manufacturing. While it differentiates itself from broader industrial ETFs with its focused strategy, it also carries higher risk due to its size and sector concentration. Ideal investors are those bullish on the American industrial renaissance and comfortable with higher volatility. AIRR's success hinges on the continued growth of the domestic industrial sector and the ETF's ability to accurately track its underlying index.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.