First Trust US Equity Income GBP Hedged UCITS ETF Dist

Issuer: First Trust

Asset Class: Equity

TER: 55bps

Trading Currency: GBX

Pays Income: False

Listing Date: 19 Jul 2023

Ticker: UIGB

ISIN: IE00079WNSI6

This actively managed fund offers a targeted approach to the US equity market, focusing on generating a high level of current income alongside long-term capital appreciation. The strategy is built on a concentrated portfolio of 30 to 50 large and mid-capitalisation US companies that demonstrate a strong track record of paying attractive and sustainable dividends. The investment process is disciplined, blending quantitative screening with in-depth qualitative, fundamental analysis. This dual approach allows the manager to identify high-quality businesses with durable competitive advantages, robust balance sheets, and high returns on invested capital. By prioritizing companies that not only offer a compelling dividend yield but also exhibit financial strength and stability, the fund aims to provide a reliable income stream and reduce volatility compared to the broader market.

The portfolio's construction is deliberately selective, aiming to capture the best income-generating opportunities within the US market without being constrained by a benchmark index. This active management allows for flexibility to navigate different market conditions and focus on companies with the most promising prospects for both dividend growth and capital gains. This particular share class incorporates a currency hedging strategy, which is specifically designed to minimize the impact of fluctuations between the US dollar and the British pound. This feature makes it an attractive option for UK-based investors who wish to access the income potential of US equities while mitigating the currency risk that can erode investment returns. The fund is well-suited for those seeking a core holding for income generation within their portfolio, providing a blend of yield, quality, and potential for growth.