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, which focuses on identifying and investing in companies that stand to benefit from the resurgence of manufacturing and industrial activity in the United States. The fund invests in companies across various market capitalizations within the industrial sector, aiming to capture the growth potential of revitalized domestic manufacturing.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for offering innovative and sector-specific investment products.

Management Expertise

First Trust has a dedicated team of investment professionals with experience in managing and analyzing sector-focused ETFs.

Goal

The ETF aims 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, a rules-based index that seeks to identify and weight companies benefiting from the resurgence of American industrial activity.

Composition The ETF primarily holds stocks of U.S. companies in the industrial sector, including manufacturing, aerospace, defense, and transportation. It invests across market capitalizations, with a focus on companies exhibiting growth and value characteristics.

Market Share: AIRR holds a relatively small market share compared to broader industrial ETFs, focusing on a specific niche within the sector.

Total Net Assets (AUM): 77440000

Key Competitors

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

Competitive Landscape

The industrial ETF market is dominated by large, broad-based ETFs like XLI and VIS. AIRR differentiates itself with its focus on the "American Industrial Renaissance," targeting companies specifically benefiting from the resurgence of U.S. manufacturing. Its advantage is its focused approach, while its disadvantage is its smaller size and potentially lower liquidity compared to larger competitors.

Historical Performance: Historical performance data should be sourced from financial data providers and analyzed over various time periods (e.g., 1 year, 3 years, 5 years, 10 years).

Benchmark Comparison: The ETF's performance should be compared to the Richard Bernstein Advisors American Industrial Renaissance Index and broader industrial benchmarks like XLI and VIS.

Expense Ratio: 0.7

Average Trading Volume

The average trading volume for AIRR is moderate, reflecting its smaller size and specialized focus.

Bid-Ask Spread

The bid-ask spread for AIRR is generally wider than that of more liquid ETFs like XLI and VIS.

Market Environment Factors

Economic indicators such as manufacturing PMI, industrial production, and capital spending influence AIRR. Sector growth prospects in areas like automation, infrastructure, and reshoring trends also play a role.

Growth Trajectory

The growth trajectory of AIRR depends on the continued strength of U.S. industrial activity and the effectiveness of the Richard Bernstein Advisors American Industrial Renaissance Index in identifying relevant companies.

Competitive Edge

AIRR's competitive edge lies in its unique focus on the "American Industrial Renaissance," targeting companies poised to benefit from the resurgence of U.S. manufacturing. Its rules-based index aims to identify and weight these companies effectively. This targeted approach differentiates it from broader industrial ETFs and appeals to investors seeking exposure to this specific theme. This could lead to outperformance if the resurgence in American industry accelerates.

Volatility

AIRR's volatility is expected to be similar to or slightly higher than broader industrial ETFs due to its more concentrated portfolio.

Market Risk

AIRR is subject to market risk associated with the industrial sector, including economic cycles, trade policies, and technological disruptions.

Ideal Investor Profile

The ideal investor for AIRR is someone who believes in the long-term resurgence of American manufacturing and seeks targeted exposure to this theme.

Market Risk

AIRR is suitable for long-term investors who are comfortable with sector-specific risk and understand the ETF's focused investment strategy.

The First Trust RBA American Industrial Renaissanceu2122 ETF (AIRR) offers a targeted approach to investing in the U.S. industrial sector, focusing on companies expected to benefit from the resurgence of domestic manufacturing. Its unique index and rules-based methodology differentiate it from broader industrial ETFs. It is suitable for investors who believe in the long-term growth potential of the American industrial renaissance. However, investors should be aware of the sector-specific risks and the ETF's smaller size compared to its larger competitors.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

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