First Trust Exchange-Traded Fund VIII - First Trust Innovation Leaders ETF (ILDR)

Overview

The First Trust Innovation Leaders ETF (ILDR) seeks to provide investment results that correspond generally to the price and yield (before the Fundu2019s fees and expenses) of an index called the IPOXu00ae Innovation Leaders Index. The fund focuses on innovative companies, primarily in the technology and healthcare sectors, that exhibit strong growth potential. It utilizes a rules-based approach to select and weight its holdings.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and thematic ETFs. They have a solid track record in delivering investment solutions.

Management Expertise

First Trust has a dedicated team of investment professionals with extensive experience in managing ETFs and analyzing market trends.

Goal

To provide investment results that correspond generally to the price and yield of the IPOXu00ae Innovation Leaders Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the IPOXu00ae Innovation Leaders Index, which identifies and ranks innovative companies based on various metrics.

Composition The ETF primarily holds stocks of companies identified as innovation leaders, focusing on sectors like technology, healthcare, and consumer discretionary.

Market Share: Data unavailable to determine the precise market share for ILDR.

Total Net Assets (AUM): 51380000

Key Competitors

• ARK Innovation ETF (ARKK)
• iShares Exponential Technologies ETF (XT)
• Invesco QQQ Trust (QQQ)

Competitive Landscape

The innovative ETF space is highly competitive. ILDR competes with larger, more established funds like ARKK and XT. ILDR's advantage lies in its specific index-tracking methodology and rules-based approach. However, it faces the challenge of attracting assets in a market dominated by a few major players. Smaller size may reduce liquidity and increase expense ratio compared to larger competitors. Competitors may offer more diverse thematic exposure.

Historical Performance: Data unavailable in this context

Benchmark Comparison: Data unavailable in this context.

Expense Ratio: 0.007

Average Trading Volume

The average trading volume of ILDR indicates moderate liquidity, which is typical for a niche ETF.

Bid-Ask Spread

The bid-ask spread of ILDR typically reflects its moderate liquidity; wider bid-ask spread can impact the cost of short-term trading.

Market Environment Factors

Economic growth, technological advancements, and investor sentiment towards innovation and growth stocks influence the ETF's performance. Interest rate changes and regulatory landscape also have an impact.

Growth Trajectory

The ETF's growth trajectory is dependent on the performance of innovation-driven sectors and the ETF's ability to attract investor interest through strong performance.

Competitive Edge

ILDR's competitive edge lies in its focus on identifying and investing in innovation leaders using the IPOXu00ae Innovation Leaders Index. This rules-based approach offers a systematic way to capture innovation trends. It differentiates itself by using specific selection criteria based on innovation scores, aiming to identify companies with high growth potential. Its methodology seeks to avoid hype-driven investments, focusing instead on companies with a proven track record of innovation and market leadership.

Volatility

The ETF's historical volatility depends on the volatility of the underlying innovative stocks, which can be higher than the broader market.

Market Risk

The ETF is subject to market risk associated with the technology and healthcare sectors, including regulatory changes, competition, and economic downturns.

Ideal Investor Profile

The ideal investor for ILDR is one who seeks exposure to innovative companies, is comfortable with moderate to high volatility, and has a long-term investment horizon.

Market Risk

ILDR is suitable for long-term investors who want to capture the potential growth of innovative companies. It may not be suitable for active traders due to potentially lower liquidity and higher bid-ask spreads compared to broader market ETFs.

The First Trust Innovation Leaders ETF (ILDR) offers exposure to companies identified as innovation leaders through a rules-based index. It is suitable for long-term investors seeking growth potential in the technology and healthcare sectors. It faces competition from larger, more established ETFs in the innovation space. Investors should consider its moderate liquidity and expense ratio when evaluating its suitability for their portfolio. Its innovative investment strategy may offer unique opportunities, but comes with inherent risks.

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. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data and AUM can fluctuate.