First Trust RBA American Industrial RenaissanceTM ETF (AIRR)

Overview

The First Trust RBA American Industrial RenaissanceTM ETF (AIRR) aims to provide capital appreciation by investing in companies that are expected to benefit from the resurgence of American manufacturing and industrial activity. It focuses on companies involved in the 'American Industrial Renaissance,' encompassing sectors such as manufacturing, automation, advanced materials, and related infrastructure.

Reputation and Reliability

First Trust is a well-established ETF provider known for its diverse range of actively managed and index-based ETFs. They have a solid track record in product development and distribution.

Management Expertise

The ETF is managed by RiverFront Investment Group, LLC, an investment advisor with expertise in various asset classes and a focus on thematic investing. Their team has experience in identifying and capitalizing on emerging economic trends.

Goal

To achieve long-term capital growth by investing in a portfolio of U.S. companies that are positioned to benefit from the revitalization of American industrial and manufacturing sectors.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. Its strategy involves identifying companies that are involved in the core elements of the American Industrial Renaissance, which can include companies that manufacture goods, produce industrial equipment, develop advanced materials, or provide essential services to these industries.

Composition The ETF primarily holds equities of companies. Its holdings are concentrated in sectors such as industrials, technology, materials, and consumer discretionary, reflecting the focus on manufacturing and related activities.

Market Share: Information on the specific market share of AIRR within its niche is not readily available, as it focuses on a thematic segment rather than a broad market index. Its AUM is a better indicator of its market presence.

Total Net Assets (AUM): 1954000000

Key Competitors

• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• iShares U.S. Industrials ETF (IBUY)
• SPDR S&P Aerospace & Defense ETF (XAR)

Competitive Landscape

The competitive landscape for thematic ETFs focused on industrial and manufacturing resurgences is growing. AIRR competes with other ETFs that target similar themes, either directly or indirectly through broader industrial or technology sector ETFs. Its advantage lies in its specific focus on the 'American Industrial Renaissance' theme, which can attract investors looking for targeted exposure to this trend. However, it faces competition from ETFs with larger AUM and broader sector coverage.

Historical Performance: The ETF has demonstrated mixed historical performance, influenced by the cyclical nature of industrial sectors and the evolving landscape of manufacturing. Recent performance would need to be reviewed against its benchmark and peers for a comprehensive understanding.

Benchmark Comparison: As an actively managed ETF, AIRR does not have a directly comparable index benchmark. Its performance is best assessed against its stated investment objective and the performance of its peer group of thematic industrial ETFs.

Expense Ratio: 0.0059

Average Trading Volume

The average trading volume for AIRR is generally sufficient for most retail investors, indicating reasonable liquidity for its niche.

Bid-Ask Spread

The bid-ask spread for AIRR is typically narrow enough to be considered cost-effective for most trading strategies.

Market Environment Factors

AIRR is influenced by factors such as U.S. industrial policy, global trade relations, technological advancements in manufacturing (e.g., automation, AI), supply chain resilience concerns, and commodity prices. Growth in sectors like advanced manufacturing, infrastructure development, and reshoring initiatives would positively impact the ETF.

Growth Trajectory

The growth trajectory of AIRR is tied to the success of the 'American Industrial Renaissance' theme. Changes in its strategy or holdings would be driven by evolving market opportunities within this theme, such as increased investment in domestic production or emerging industrial technologies.

Competitive Edge

AIRR's primary competitive edge lies in its focused thematic investment strategy, targeting the specific trend of American industrial resurgence. This niche focus allows it to capture companies poised to benefit from this particular economic narrative. The active management approach by RiverFront Investment Group aims to identify undervalued opportunities within this theme, potentially leading to alpha generation. Its focus on companies contributing to domestic manufacturing and innovation provides a distinct positioning compared to broader industrial ETFs.

Volatility

The ETF's historical volatility is likely moderate to high, reflecting the inherent risks associated with equity investments in the industrial and manufacturing sectors, which can be cyclical and sensitive to economic downturns.

Market Risk

Market risks for AIRR include economic recessions, geopolitical instability affecting global supply chains and trade, technological disruption rendering certain industrial processes obsolete, and shifts in government policy that may impact manufacturing incentives or trade regulations.

Ideal Investor Profile

The ideal investor for AIRR is one who believes in the long-term potential of the American industrial and manufacturing sector revival. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

AIRR is best suited for long-term investors seeking to capitalize on a specific economic theme rather than active traders due to its focused strategy and potential for moderate to high volatility.

The First Trust RBA American Industrial RenaissanceTM ETF (AIRR) is an actively managed fund targeting companies benefiting from the resurgence of American manufacturing. With a focus on industrials, technology, and materials, it aims for capital appreciation. Managed by RiverFront Investment Group, it offers a niche thematic approach. While facing competition, its focused strategy presents a unique investment opportunity for long-term investors with a higher risk tolerance who believe in the 'American Industrial Renaissance' narrative.

Data Sources:

• First Trust Investments Website
• Financial Data Aggregators (e.g., Bloomberg, Refinitiv - for performance and AUM data)
• SEC Filings

Disclaimers:

This information is for illustrative 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. Data accuracy is subject to the availability and reliability of the sources.