First Trust International Equity Opportunities ETF (FPXI)

Overview

The First Trust International Equity Opportunities ETF (EPP) seeks long-term capital appreciation by investing in a portfolio of non-U.S. equity securities believed to have above-average growth potential. It focuses on identifying companies with strong growth prospects, irrespective of sector or market capitalization, within developed and emerging markets outside the United States.

Reputation and Reliability

First Trust is a well-established ETF provider with a reputation for innovation and a broad range of investment strategies. They are known for their thematic and active ETFs.

Management Expertise

First Trust has an experienced management team dedicated to ETF development and portfolio management. Their team has a solid track record in identifying and managing international equity investments.

Goal

The ETF seeks long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but employs a proprietary fundamental research process to select securities.

Composition The ETF primarily holds equity securities of companies located outside of the United States. These securities can vary in market capitalization and sector.

Market Share: Market share data is not readily available for this specific investment style within the broader international equity ETF market.

Total Net Assets (AUM): 129950000

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The international equity ETF market is highly competitive, with several large, low-cost index funds dominating. EPP differentiates itself through its active management and focus on growth opportunities. A disadvantage is its higher expense ratio compared to passive index funds, but the advantage lies in potential outperformance through stock selection.

Historical Performance: Historical performance data requires specifying a time frame. Refer to financial data sources for detailed performance over various periods.

Benchmark Comparison: Performance should be compared against a broad international equity index like the MSCI EAFE or FTSE Developed ex US index.

Expense Ratio: 0.0085

Average Trading Volume

The ETF's average trading volume indicates its liquidity, with higher volumes generally leading to easier order execution and tighter spreads.

Bid-Ask Spread

The bid-ask spread reflects the difference between the highest price a buyer is willing to pay and the lowest price a seller will accept, directly impacting trading costs.

Market Environment Factors

Economic growth in developed and emerging markets, interest rate policies of central banks, geopolitical events, and currency fluctuations all affect the performance of EPP.

Growth Trajectory

EPP's growth depends on its ability to identify and capitalize on international growth opportunities, adapt to changing market conditions, and maintain a competitive advantage through its active management strategy.

Competitive Edge

EPP's competitive edge stems from its active management approach, which aims to identify companies with strong growth potential through fundamental research. This differentiates it from passive index funds. The fund's flexibility to invest across market caps and sectors in international markets provides a broader investment universe. However, the success of this strategy relies heavily on the skill and expertise of the investment team.

Volatility

EPP's volatility is influenced by the volatility of the underlying international equity markets and the specific stocks it holds. Emerging market exposure can increase volatility.

Market Risk

EPP faces market risks associated with fluctuations in international equity markets, currency risk due to foreign investments, and geopolitical risks affecting specific countries or regions.

Ideal Investor Profile

The ideal investor for EPP is one seeking long-term capital appreciation from international equities and who is comfortable with the higher expense ratio and potential risks associated with active management.

Market Risk

EPP is more suitable for long-term investors who believe in active management and are willing to pay a higher fee for potential outperformance compared to passive index funds.

First Trust International Equity Opportunities ETF is an actively managed fund targeting long-term capital appreciation by investing in non-U.S. equities. Its success hinges on the investment team's ability to identify high-growth companies. The ETF has a higher expense ratio than passively managed international equity funds, but that is potentially offset by outperformance. Investors need to consider their risk tolerance, time horizon, and belief in active management when evaluating EPP.

Data Sources:

• First Trust website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is approximate and based on available information. Investment decisions should be made based on individual circumstances and after consulting with a financial advisor.