First Trust Growth Strength ETF (FTGS) Performance Overview

The First Trust Growth Strength ETF (FTGS) provides solid exposure to large-cap growth stocks. The ETF's recent performance indicates a stable uptrend, potentially appealing to investors seeking consistency amid market volatility.

Date: 18-02-2025

AI Rating: 7

Performance and Investment Overview
The First Trust Growth Strength ETF (FTGS) provides an overview of its performance, revealing its 3.12% gain year-to-date and an impressive 11.46% increase over the last year as of February 17, 2025. These percentages indicate a positive trajectory for investors, suggesting the ETF is effectively capturing growth in the large-cap segment.

Earnings and Key Metrics
The report does not explicitly mention Earnings Per Share (EPS), Net Income, Profit Margins (Gross, Operating, Net), Free Cash Flow (FCF), or Return on Equity (ROE), which limits the depth of financial analysis available. However, the mention of metrics such as liquidity, return on equity, revenue growth, and cash flow growth suggests a focus on robust financial fundamentals.

Expense Ratio
The ETF carries an annual operating expense ratio of 0.60%, making it one of the more expensive options in its category. While this could deter cost-sensitive investors, the potential for strong performance may justify the expense ratio for many.

Sector Allocation and Holdings
FTGS has a significant allocation of 25.70% to the Financials sector, followed by Information Technology and Industrials. This diversified sector allocation aims to mitigate risks associated with single stock exposure, enhancing overall portfolio stability.

The top holdings include companies like Deckers Outdoor Corporation (DECK), Expedia Group, Inc. (EXPE), and Netflix, Inc. (NFLX), which constitute 23.19% of the total assets under management. Such diversification among top companies can buffer the ETF against volatility in individual stocks.

Betas and Risks
With a beta of 1.16 and a standard deviation of 15.72% over a three-year period, the ETF presents a higher level of volatility compared to the broader market. Investors should weigh this risk against the potential for higher returns when considering allocation into this ETF.

Stocks: DECK EXPE NFLX