First Trust Growth Strength UCITS ETF

Issuer: First Trust

Asset Class: Equity

TER: 60bps

Trading Currency: USD

Pays Income: False

Listing Date: 22 Oct 2024

Ticker: FTGS

ISIN: IE000YZLMXT9

This actively managed fund provides exposure to a portfolio of U.S. large-capitalization equity securities. The investment approach is systematic and quantitative, aiming to identify companies that exhibit compelling growth characteristics combined with strong relative price momentum. This dual-factor approach seeks to capture the potential of businesses that are not only expanding rapidly but are also being rewarded by the market, potentially avoiding companies whose growth is not yet recognized or is beginning to fade.

The fund's manager employs a proprietary, rules-based model to screen the U.S. equity universe. Stocks are ranked based on a combination of fundamental growth factors, such as sales and earnings growth, alongside technical factors like relative price strength over various time periods. The portfolio is constructed from the highest-ranking securities, resulting in a concentrated basket of approximately 50 holdings. This portfolio is systematically rebalanced on a quarterly basis to ensure it remains aligned with the strategy's core principles, shedding laggards and incorporating newly qualified leaders.

This investment vehicle is designed for those seeking long-term capital growth and who believe in an active, factor-based approach to U.S. equity investing. By focusing on both growth and momentum, the strategy attempts to provide superior risk-adjusted returns compared to traditional market-cap-weighted benchmarks over a full market cycle. It can serve as a core holding for U.S. equity exposure or as a satellite position to complement other strategies, offering a distinct and disciplined method for capturing upside potential in the world's largest stock market.