First Trust Global Tactical Commodity Strategy Fund (FTGC)

Overview

The First Trust Global Tactical Commodity Strategy Fund (FTGC) is an actively managed ETF that seeks to provide total return. The fund invests primarily in commodity-linked derivative instruments and commodity-related equity securities, using a tactical approach to adjust its exposure based on market conditions.

Reputation and Reliability

First Trust is a well-established ETF issuer with a solid track record of providing innovative and diversified investment products.

Management Expertise

First Trust has a dedicated team of investment professionals with expertise in commodity markets and tactical asset allocation.

Goal

To seek total return by investing in commodity-linked derivative instruments and commodity-related equity securities.

Investment Approach and Strategy

Strategy: The fund employs a tactical approach, actively adjusting its commodity exposure based on market conditions and economic outlook.

Composition The ETF primarily holds commodity-linked derivatives, such as futures contracts, and commodity-related equities.

Market Share: FTGC has a relatively small market share in the broader commodity ETF space.

Total Net Assets (AUM): 76680000

Key Competitors

• DBC
• PDBC
• GSG

Competitive Landscape

The commodity ETF market is highly competitive, with several large players offering similar exposures. FTGC's tactical approach aims to differentiate it from passive commodity trackers, but its active management may result in higher fees and potentially less predictable performance. The main competitors are passively managed ETFs and offer broader diversification within the commodity market.

Historical Performance: Historical performance data should be viewed from the Fund Fact Sheet or other reliable sources, considering time period of relevance.

Benchmark Comparison: The fund's performance should be compared to a broad commodity index to evaluate its effectiveness.

Expense Ratio: 0.0095

Average Trading Volume

FTGC's average daily trading volume is moderate, which might affect trading costs for large orders.

Bid-Ask Spread

The bid-ask spread for FTGC varies but is generally reasonable, though it can widen during periods of market volatility.

Market Environment Factors

Economic indicators, global supply and demand dynamics, geopolitical events, and weather patterns influence the prices of commodities and impact FTGC's performance.

Growth Trajectory

FTGC's growth trajectory depends on its ability to attract assets through its tactical commodity strategy and deliver competitive returns.

Competitive Edge

FTGC's active management and tactical commodity strategy are designed to provide a competitive edge by adjusting exposure based on market conditions. This approach aims to outperform passive commodity indexes during periods of changing commodity prices. The fund's ability to successfully navigate commodity market volatility will determine its success. However, active management also introduces the risk of underperformance compared to passive benchmarks.

Volatility

Commodity markets are inherently volatile, and FTGC's performance is subject to significant fluctuations due to changes in commodity prices.

Market Risk

The fund is exposed to market risk related to the performance of commodity-linked derivatives and commodity-related equities.

Ideal Investor Profile

The ideal investor for FTGC is one seeking commodity exposure as part of a diversified portfolio and who is comfortable with active management and its associated risks and fees.

Market Risk

FTGC is suitable for investors with a moderate to high risk tolerance who seek to potentially enhance returns through tactical commodity exposure but should be aware that losses are possible.

First Trust Global Tactical Commodity Strategy Fund is an actively managed ETF aiming for total return through commodity-linked instruments and equities. Its tactical strategy seeks to adapt to market conditions, offering potential outperformance, but also introducing active management risks. The fund suits investors seeking commodity exposure within a diversified portfolio and can tolerate market volatility. Its performance depends on management's ability to navigate commodity market dynamics and compete against passive commodity indexes.

Data Sources:

• First Trust Website
• ETF.com
• Bloomberg
• Morningstar

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. Investing in ETFs involves risks, including the potential loss of principal.