First Trust RBA American Industrial RenaissanceTM ETF (AIRR)

Overview

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) is an actively managed ETF that seeks to invest in companies that are expected to benefit from the renaissance of American industrial activity. The fund focuses on companies involved in manufacturing, infrastructure, energy, mining, and technology related to these sectors. Its investment strategy emphasizes identifying and investing in companies that are at the forefront of innovation and production within the United States.

Reputation and Reliability

First Trust Advisors L.P. is a well-established investment management company with a significant track record in launching and managing ETFs. They are known for offering a diverse range of thematic and actively managed ETFs, which generally garners them a reputation for reliability among investors.

Management Expertise

The ETF is managed by the RBA (River Birch Asset) team, which brings specialized expertise in identifying companies poised to benefit from industrial reshoring and modernization trends in the U.S.

Goal

To seek capital appreciation by investing in companies that are expected to benefit from the resurgence of American industrial activity.

Investment Approach and Strategy

Strategy: The ETF is actively managed, meaning the portfolio managers make discretionary investment decisions to select securities. It does not track a specific index but rather seeks to identify companies aligned with the 'American Industrial Renaissance' theme.

Composition The ETF primarily holds common stocks of U.S.-based companies across various industrial sectors, including manufacturing, technology, energy, materials, and industrials.

Market Share: As an actively managed, thematic ETF, its market share within the broader ETF market is relatively niche compared to broad-based index funds. Specific market share data for thematic ETFs is often not as readily available or as significant as for large-cap index ETFs.

Total Net Assets (AUM): 164900000

Key Competitors

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

Competitive Landscape

The industrial ETF landscape is dominated by large, passively managed sector ETFs like XLI. AIRR competes by offering an actively managed, thematic approach focused on a specific narrative of industrial resurgence. Its advantage lies in its targeted strategy and potential for outperformance through active management, but its disadvantages include higher expense ratios and potentially less diversification than broad industrial ETFs.

Historical Performance: [object Object]

Benchmark Comparison: While AIRR does not track a specific index, its performance can be compared to broader industrial indices such as the S&P 500 Industrials Index or the MSCI USA Industrial Index. Historically, actively managed ETFs can outperform or underperform their benchmarks depending on management skill and market conditions.

Expense Ratio: 0.65

Average Trading Volume

The ETF has a moderate average daily trading volume, indicating generally good liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for AIRR is typically within a reasonable range, reflecting its accessibility to retail and institutional traders.

Market Environment Factors

The ETF is sensitive to economic growth, government infrastructure spending, manufacturing output, and global trade policies. Trends like reshoring, supply chain diversification, and technological advancements in manufacturing directly impact its holdings. Geopolitical events and interest rate movements also play a significant role.

Growth Trajectory

The growth trajectory of AIRR is tied to the success of the 'American Industrial Renaissance' narrative. Changes in strategy or holdings would depend on shifts in RBA's outlook on specific industrial sub-sectors and individual companies, driven by evolving economic conditions and technological innovations.

Competitive Edge

AIRR's competitive edge stems from its specialized, actively managed approach targeting the 'American Industrial Renaissance' theme. The RBA management team's deep understanding of industrial trends and their ability to identify undervalued companies within this niche provide a distinct advantage. This focused strategy allows them to capitalize on specific growth opportunities that broader, passive ETFs might miss.

Volatility

The ETF exhibits volatility consistent with its focus on industrial and cyclical sectors, which are inherently more sensitive to economic cycles than defensive sectors. Its historical volatility can be assessed through standard deviation metrics.

Market Risk

Market risk for AIRR includes risks associated with economic downturns, inflation, interest rate changes, and fluctuations in commodity prices. Specific to its holdings, there are also risks related to manufacturing disruptions, technological obsolescence, and competitive pressures within the industrial sector.

Ideal Investor Profile

The ideal investor for AIRR is one who believes in the long-term potential of a resurgent American industrial sector and is comfortable with actively managed funds. Investors should have a medium to high risk tolerance and a long-term investment horizon.

Market Risk

This ETF is best suited for investors seeking active management and a focused exposure to the industrial renaissance theme, fitting well within a diversified portfolio for long-term growth objectives.

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) is an actively managed fund targeting companies poised to benefit from a resurgence in U.S. industry. It offers a thematic approach, distinct from broad industrial ETFs, with a focus on manufacturing, technology, and infrastructure. While its active management and niche focus present opportunities for outperformance, it also comes with a higher expense ratio and sector-specific risks. AIRR is best suited for long-term investors with a belief in the American industrial comeback narrative and a moderate to high risk tolerance.

Data Sources:

• First Trust Advisors L.P. Official Website
• Financial Data Provider APIs (e.g., Morningstar, Bloomberg - specific source not identified here for proprietary reasons)

Disclaimers:

This JSON output is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Data accuracy is based on information available at the time of generation and may be subject to change.