First Trust Exchange-Traded Fund IV - FT Energy Income Partners Strategy ETF (EIPX)

Overview

The FT Energy Income Partners Strategy ETF (EIPX) seeks to generate income by investing in energy companies, with a focus on master limited partnerships (MLPs) and other energy infrastructure firms. Its strategy emphasizes stable income generation with potential for long-term capital appreciation through investment in energy sector securities.

Reputation and Reliability

First Trust is a well-established ETF provider known for innovative and sector-focused ETFs, with a solid track record in the ETF market.

Management Expertise

First Trust Advisors L.P. has a dedicated team experienced in managing sector-specific and income-oriented investment strategies.

Goal

The primary investment goal is to seek a high level of current income. A secondary objective is to seek capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs an actively managed strategy that invests in companies involved in the energy sector, with a focus on MLPs, pipeline companies, and other energy infrastructure firms. It does not track a specific index.

Composition The ETF's assets primarily consist of common stocks, master limited partnerships (MLPs), and other equity securities within the energy sector.

Market Share: Data not readily available.

Total Net Assets (AUM): 23050000

Key Competitors

• ALPS Alerian MLP ETF (AMLP)
• InfraCap MLP ETF (AMZA)
• Global X MLP ETF (MLPA)

Competitive Landscape

The energy MLP ETF market is moderately competitive. EIPX competes with larger, more liquid ETFs like AMLP, AMZA and MLPA. EIPX differentiates itself through active management and a more diversified energy infrastructure focus compared to pure MLP ETFs. Disadvantages include higher expense ratio and potentially lower liquidity than larger competitors.

Historical Performance: Historical performance data should be obtained from reliable financial data sources.

Benchmark Comparison: The ETF's performance should be compared to the Alerian MLP Infrastructure Index (AMZI) or similar energy infrastructure benchmarks.

Expense Ratio: 0.95

Average Trading Volume

The ETF's liquidity can be assessed through its average daily trading volume, which can fluctuate based on investor interest and market conditions.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, indicating the cost of trading the ETF.

Market Environment Factors

The performance of EIPX is heavily influenced by energy prices, interest rates, regulatory changes affecting the energy sector, and overall economic conditions.

Growth Trajectory

The ETF's growth depends on the stability and growth of the energy infrastructure sector, investor demand for income-generating assets, and the manager's ability to generate returns.

Competitive Edge

EIPX's active management allows it to adapt to changing market conditions and potentially outperform passive MLP ETFs. It offers a more diversified exposure to energy infrastructure beyond just MLPs, which can reduce risk. Its management team's experience in the energy sector provides an advantage in selecting and managing investments. However, active management does not guarantee outperformance and comes with higher costs. A smaller AUM also limits liquidity compared to bigger competitors.

Volatility

The ETF's volatility depends on the volatility of the energy sector and its underlying holdings, including MLPs and pipeline companies.

Market Risk

Market risk includes fluctuations in energy prices, changes in interest rates, regulatory risks affecting the energy sector, and general economic downturns.

Ideal Investor Profile

EIPX is suited for investors seeking current income, with a moderate to high-risk tolerance, who are interested in the energy sector and comfortable with the complexities of investing in MLPs and other energy infrastructure assets.

Market Risk

This ETF is better suited for long-term investors seeking income, rather than active traders looking for short-term gains.

The FT Energy Income Partners Strategy ETF seeks high current income and capital appreciation through investment in energy infrastructure. Its active management strategy allows for flexibility but comes with a higher expense ratio than passive alternatives. Its performance is closely tied to the energy sector's health and investor sentiment toward income-generating assets. Suitable for long-term investors seeking sector-specific income, EIPX offers diversification within energy infrastructure. However, its smaller AUM can lead to lower liquidity compared to other energy-focused ETFs.

Data Sources:

• First Trust Website
• ETF Database
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on your own due diligence and consultation with a qualified financial advisor. Market share and financial performance data may vary and should be verified with the fund provider or other reliable sources.