First Trust North American Energy Infrastructure Fund (EMLP)

Overview

The First Trust North American Energy Infrastructure Fund (NYSEARCA: FIF) seeks to provide investment results that correspond generally to the price and yield of an index called the ISE North American Energy Infrastructure Index. The fund invests primarily in securities of companies that derive a significant portion of their revenues from operating energy infrastructure assets. The target sector is energy infrastructure with an asset allocation focused on equities of North American companies.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation for offering innovative investment solutions.

Management Expertise

First Trust has experienced portfolio managers and analysts specializing in energy infrastructure investments.

Goal

To provide investment results that correspond generally to the price and yield of the ISE North American Energy Infrastructure Index.

Investment Approach and Strategy

Strategy: The fund aims to track the ISE North American Energy Infrastructure Index.

Composition The ETF primarily holds stocks of North American companies involved in energy infrastructure, such as pipelines, storage facilities, and other related assets.

Market Share: FIF's market share among energy infrastructure ETFs is moderate; it is not a dominant player, but holds a significant position.

Total Net Assets (AUM): 1060000000

Key Competitors

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

Competitive Landscape

The energy infrastructure ETF market is competitive with several established players. FIF competes on its index tracking, fee structure, and investment approach. Its advantage lies in its broader scope beyond MLPs, offering diversified exposure. Disadvantages may include higher expense ratio relative to some competitors or differing index methodologies.

Historical Performance: Historical performance data needs to be obtained from financial data providers.

Benchmark Comparison: Benchmark comparison data needs to be obtained from financial data providers.

Expense Ratio: 0.095

Average Trading Volume

The ETF exhibits moderate liquidity with an average trading volume that allows for relatively easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating reasonable trading costs for investors.

Market Environment Factors

Economic growth, energy prices, regulatory changes, and infrastructure spending influence FIF's performance.

Growth Trajectory

Growth trends depend on the overall health of the energy sector and government policies, with potential shifts in strategy and holdings based on market conditions.

Competitive Edge

FIF benefits from the established reputation of First Trust and its focus on a broader range of energy infrastructure companies, not just MLPs. This provides diversification and potentially reduces concentration risk. The fund's index methodology targets key players in the North American energy infrastructure space, offering investors exposure to critical assets. FIF's relatively small size may allow for quicker adaptation to market changes. While fees are slightly higher than some competitors, the fund's potential for diversification may justify the expense for some investors.

Volatility

Historical volatility data needs to be obtained from financial data providers.

Market Risk

The ETF is subject to market risk related to the energy sector, interest rate risk, and regulatory risks affecting energy infrastructure companies.

Ideal Investor Profile

Investors seeking exposure to North American energy infrastructure assets for income and potential capital appreciation may find FIF suitable.

Market Risk

FIF is suitable for long-term investors seeking to diversify their portfolios with energy infrastructure assets, while being mindful of sector-specific risks.

First Trust North American Energy Infrastructure Fund (FIF) offers exposure to a diversified portfolio of North American energy infrastructure companies. It tracks the ISE North American Energy Infrastructure Index, providing access to key players in the sector. The fund's moderate expense ratio and reasonable liquidity make it a viable option for investors seeking to participate in the energy infrastructure market. However, investors should be aware of the inherent risks associated with the energy sector and potential market volatility. Investors should consult financial data providers to obtain the ETFu2019s historical performance and key metrics, such as volatility, total returns, and benchmark comparisons, to help aid in the investment decisions.

Data Sources:

• First Trust Website
• ETFdb.com
• Yahoo Finance
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made after consulting with a qualified financial advisor and conducting thorough research.