First Trust SMID Growth Strength ETF (FSGS)

Overview

The First Trust SMID Growth Strength ETF (FTCS) seeks to provide investment results that correspond generally to the price and yield of an index called the AlphaDEXu00ae Small Mid Cap Growth Index. It focuses on identifying and investing in small and mid-capitalization growth stocks within the U.S. market using a quantitative methodology.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and delivering diverse investment solutions.

Management Expertise

First Trust has a dedicated team of investment professionals with extensive experience in portfolio management and quantitative analysis.

Goal

To provide investment results that correspond generally to the price and yield of the AlphaDEXu00ae Small Mid Cap Growth Index.

Investment Approach and Strategy

Strategy: The ETF employs a quantitative, rules-based strategy to select and weight securities from a defined universe of small and mid-cap growth stocks.

Composition The ETF primarily holds common stocks of small and mid-capitalization companies exhibiting growth characteristics.

Market Share: The market share of FTCS within the SMID growth ETF space is not publicly available in real-time with high precision.

Total Net Assets (AUM): 98400000

Key Competitors

• Vanguard Small-Cap Growth ETF (VBK)
• iShares Russell 2000 Growth ETF (IWO)
• Schwab U.S. Small-Cap Growth ETF (SCHG)

Competitive Landscape

The SMID growth ETF market is competitive, with several established players. FTCS differentiates itself through its AlphaDEXu00ae methodology, which ranks stocks based on growth factors. However, larger competitors like VBK and IWO have significant AUM advantages and broader market recognition. FTCS offers a unique approach, but faces the challenge of attracting investors from more established funds.

Historical Performance: Historical performance data is available on financial websites, showcasing returns over different periods (e.g., 1-year, 3-year, 5-year, 10-year, since inception).

Benchmark Comparison: The ETF's performance should be compared to the AlphaDEXu00ae Small Mid Cap Growth Index to assess tracking efficiency.

Expense Ratio: 0.007

Average Trading Volume

The ETF's liquidity is moderate, as indicated by its average trading volume, which can be checked on financial websites.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting the ETF's moderate liquidity and indicating relatively low trading costs.

Market Environment Factors

Economic growth, interest rates, and investor sentiment toward small and mid-cap stocks significantly impact the ETF's performance.

Growth Trajectory

The ETF's growth trajectory depends on the performance of its underlying holdings and the effectiveness of the AlphaDEXu00ae methodology in identifying growth companies.

Competitive Edge

FTCS's competitive edge lies in its proprietary AlphaDEXu00ae methodology, which aims to identify fundamentally sound growth companies. This quantitative approach seeks to outperform traditional market-cap weighted indices. The strategy focuses on companies with strong growth metrics and financial strength. This differentiated approach appeals to investors seeking a more active and selective approach to SMID growth investing.

Volatility

The ETF's volatility is expected to be higher than broader market indices due to its focus on small and mid-cap stocks, which are inherently more volatile.

Market Risk

The ETF is subject to market risk, including the risk of economic downturns and sector-specific challenges affecting its underlying holdings. Smaller companies can be more sensitive to economic shifts.

Ideal Investor Profile

The ideal investor is seeking growth potential within the small and mid-cap space and is comfortable with higher volatility than large-cap investments.

Market Risk

The ETF is suitable for long-term investors seeking growth and diversification, but active traders may also find opportunities due to its liquidity.

First Trust SMID Growth Strength ETF (FTCS) offers exposure to small and mid-cap growth stocks through its proprietary AlphaDEXu00ae methodology, seeking to identify companies with strong growth characteristics. While the ETF differentiates itself, larger competitors dominate the SMID growth ETF market. It is a suitable choice for long-term investors seeking growth, but investors should be aware of the increased volatility associated with SMID-cap investments. The expense ratio is relatively low. The AI based rating reflects both the strength of the underlying methodology but the relatively small size of the ETF compared to its competitors.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.