First Trust Indxx Global Natural Resources Income ETF (FTRI)

Overview

The First Trust Indxx Global Natural Resources Income ETF (FTRI) seeks investment results that correspond generally to the price and yield of the Indxx Global Natural Resources Income Index. It aims to provide investors with exposure to companies involved in the natural resources sector while also offering an income component through dividend-paying stocks.

Reputation and Reliability

First Trust is a well-established ETF provider known for its diverse range of investment products. They are generally considered reputable and reliable.

Management Expertise

First Trust has a dedicated team of investment professionals with expertise in managing ETFs and tracking various indices.

Goal

The ETF's primary goal is to provide investment results that correspond generally to the price and yield of the Indxx Global Natural Resources Income Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to replicate the performance of the Indxx Global Natural Resources Income Index.

Composition The ETF primarily holds stocks of companies involved in the natural resources sector, including energy, materials, and agriculture. It focuses on companies that pay dividends.

Market Share: Insufficient data to provide an accurate market share.

Total Net Assets (AUM): 230700000

Key Competitors

• SPDR S&P Global Natural Resources ETF (GNR)
• iShares MSCI Global Metals & Mining Producers ETF (PICK)
• VanEck Natural Resources ETF (HAP)

Competitive Landscape

The natural resources ETF market is moderately competitive, with several established players. FTRI competes by offering a dividend income component, which may appeal to income-seeking investors. However, its AUM is generally lower than some of its larger competitors, potentially impacting liquidity and trading costs. GNR offers broader exposure while PICK is focused on metals and mining.

Historical Performance: Historical financial performance data is not readily available in a structured format for all periods without external tools.

Benchmark Comparison: Benchmark comparison requires specific historical performance data and index data which is not readily available for structured comparison.

Expense Ratio: 0.7

Average Trading Volume

FTRI's average trading volume is moderate, which could impact trade execution costs for larger orders.

Bid-Ask Spread

The bid-ask spread for FTRI is generally moderate, representing a typical cost for trading this ETF.

Market Environment Factors

The performance of FTRI is heavily influenced by commodity prices, global economic growth, and geopolitical events affecting natural resource supply and demand.

Growth Trajectory

FTRI's growth is tied to the cyclical nature of the natural resources sector, with periods of expansion during economic booms and potential downturns during recessions. Changes to the index or investment strategy are publically disclosed in its regulatory filings.

Competitive Edge

FTRI differentiates itself by focusing on dividend-paying companies within the natural resources sector, potentially providing a more stable income stream compared to ETFs solely focused on capital appreciation. This income focus may attract a specific segment of investors. The ETF's passive management strategy aims to closely track its underlying index, reducing active management risk. However, this also means it may not outperform the index during certain periods.

Volatility

The volatility of FTRI is expected to be moderate to high, reflecting the inherent volatility of the natural resources sector and commodity prices.

Market Risk

FTRI is exposed to market risk associated with fluctuations in commodity prices, changes in supply and demand dynamics, and regulatory developments affecting the natural resources industry. Country-specific risks may also apply based on the geographic distribution of holdings.

Ideal Investor Profile

The ideal investor for FTRI is someone seeking income from the natural resources sector and willing to accept moderate to high volatility.

Market Risk

FTRI may be suitable for long-term investors seeking diversification and income, but it is not ideal for risk-averse investors or those seeking short-term gains.

The First Trust Indxx Global Natural Resources Income ETF (FTRI) offers targeted exposure to dividend-paying companies within the global natural resources sector. Its passive management strategy aims to replicate the performance of the Indxx Global Natural Resources Income Index, providing a potentially stable income stream. However, investors should be aware of the ETF's inherent volatility due to commodity price fluctuations and economic cycles. It is suitable for investors seeking income and diversification but not for those with a low-risk tolerance.

Data Sources:

• First Trust Website
• ETF.com
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change rapidly.