First Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial and technology, enabling me to uncover overlooked investment opportunities.With a strong background in investment, private equity and venture capital, I have a proven track record of delivering strong returns for readers. Articles on Seeking Alpha focus ...

Analyst's Disclosure:I/we have a beneficial long position in the shares of SPX, NDX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether an ...

Core Viewpoint - The investment thesis on United Parcel Service (UPS) is centered around its strategic transformation and the support of a solid dividend, indicating a value buy opportunity despite challenges in timing entry points [1]. Group 1: Company Analysis - UPS is undergoing a strategic transformation aimed at enhancing its value proposition in the market [1]. - The company offers a decent dividend cushion, which adds to its attractiveness as a value investment [1]. Group 2: Analyst Background - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1]. - The analyst previously held a Vice President position at Barclays, leading teams in model validation and stress testing, which contributes to a deep expertise in both fundamental and technical analysis [1]. - The research is co-authored with a partner, combining strengths to deliver high-quality, data-driven insights with a focus on macroeconomic trends and corporate earnings [1].

Core Insights - The article discusses CTO Realty Growth (CTO) and its preferred stock (CTO.PR.A), which currently offers a yield of approximately 7.4% [1] Group 1: Company Overview - CTO Realty Growth is highlighted as a potential investment opportunity due to its preferred stock's yield [1] Group 2: Investment Strategy - The article suggests that active investors can join a free trial to engage in discussions about investment opportunities, including those related to CTO [1]

Group 1 - The FT Vest U.S. Equity Enhance & Moderate Buffer ETF – September aims to provide equity-linked returns through a defined outcome options package referencing the SPDR S&P 500 ETF Trust [1] - The fund invests substantially all assets in exchange-traded FLEX Options, targeting approximately twice any positive price return up to a predetermined cap while offering a buffer against the first 15% of losses over a Target Outcome Period of about one year [1] - Portfolio construction involves offsetting long and short call and put FLEX Options with a common expiration, embedding the desired upside participation and downside buffer, with residual assets held in USD cash or short-duration U.S. government securities as collateral [1] Group 2 - At each Target Outcome Period reset, the fund systematically rolls into a new FLEX Options basket with the same buffer but a newly determined cap [1]

Core Viewpoint - The Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) is designed to target U.S. small-cap equities that offer high dividend yields while maintaining low price volatility, utilizing the S&P SmallCap 600 Low Volatility High Dividend Index as its benchmark [1] Group 1: Portfolio Construction Methodology - The underlying index focuses on U.S. small-cap stocks with high indicated dividend yields and low price volatility, sourced from the S&P SmallCap 600 [1] - Eligible stocks must have a positive indicated regular dividend and are selected based on trailing 12-month price volatility during semiannual reviews [1] - The index consists of 60 constituents weighted by indicated annual dividend yield, with individual stock weights capped around 3% and sector weights limited to approximately 25% to manage concentration [1] - The index undergoes reconstitution and rebalancing twice a year, following the third Friday of January and July [1]

Core Insights - The Invesco S&P SmallCap Momentum ETF (XSMO US) is based on the S&P SmallCap 600 Momentum Index, which focuses on profitable and liquid U.S. small-cap stocks [1] - The index selects the top 120 securities based on risk-adjusted price momentum, utilizing standardized 6- and 12-month returns with outlier control [1] - Constituents are score-weighted, meaning those with higher momentum scores receive larger weights, while adhering to diversification controls to manage concentration risks [1] - The index undergoes semi-annual reconstitution and rebalancing, typically in June and December, using updated momentum calculations and current S&P 600 membership [1] - The small-cap parent index is maintained by a committee to ensure it reflects U.S. small-caps with sustained profitability, with market-cap guidelines that are below mid-cap and above micro-cap levels [1] Additional Insights - For further analysis of XSMO, an ETF analytics platform is available that provides institutional-grade insights, including performance and risk metrics, correlations, sensitivities, and factor exposure [2]

Core Insights - The WisdomTree Emerging Markets ex-State-Owned Enterprises Index provides broad exposure to emerging markets while excluding state-owned enterprises, defined as those with government ownership exceeding 20% of shares outstanding [1] Group 1: Index Methodology - The index includes major emerging market listing venues, such as Stock Connect A-shares, and is subject to foreign ownership availability [1] - Constituents are float-adjusted and weighted by modified market capitalization [1] - Quarterly capping rules limit any single position from reaching 24% to 20% and restrict the combined weight of constituents above 5% to 40% if that sum exceeds 50% [1] Group 2: Weighting Adjustments - After excluding state-owned enterprises, country weights are scaled back toward pre-exclusion levels with a country factor capped at 3 times [1] - Sector weights are maintained within ±3% of the starting universe [1] - Onshore China exposure is capped at 7.5%, with any excess allocated to H-shares [1] Group 3: Reconstitution - The index undergoes annual reconstitution in October [1]

Group 1 - The SPDR S&P Software & Services ETF (XSW US) targets U.S. companies classified in Application Software, Systems Software, IT Consulting & Other Services, and Interactive Home Entertainment [1] - Eligibility for inclusion in the index requires a float-adjusted market cap of at least USD 500 million and a liquidity ratio of at least 90% over 12 months, with stricter criteria for companies with a market cap between USD 400 million and USD 500 million [1] - The index employs a modified equal-weight scheme with a maximum single-name cap of 4.5% and rebalances quarterly, with membership reviewed at each rebalance [1]

Core Insights - The iShares Exponential Technologies ETF (XT US) targets global companies involved in "exponential" technologies, focusing on those with a free-float market cap greater than USD 300 million and a 3-month average daily trading volume (ADTV) of at least USD 2 million [1] Group 1: Portfolio Construction Methodology - The underlying index prioritizes the top 10 "theme leaders" per theme based on their scores, aiming for a total of 200 constituents through a cross-theme ranking system [1] - The index is float-market-cap weighted with a single-stock cap of 4%, and core exposure to any theme is capped at 25% [1] - At least 90% of the index weight must have a forecasted 5-year revenue exposure of at least 25% to one theme, with annual reconstitution and quarterly rebalancing [1]