Should First Trust Capital Strength ETF (FTCS) Be on Your Investing Radar?

Core Viewpoint - The First Trust Capital Strength ETF (FTCS) is a significant player in the Large Cap Blend segment of the US equity market, with over $8.36 billion in assets, making it one of the largest ETFs in this category [1] Group 1: ETF Overview - FTCS is a passively managed ETF launched on July 6, 2006, sponsored by First Trust Advisors [1] - The ETF targets companies with a market capitalization above $10 billion, typically offering more stability and reliable cash flows compared to mid and small cap companies [2] Group 2: Costs and Performance - The annual operating expense ratio for FTCS is 0.52%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 1.22% [3] - FTCS has achieved a return of approximately 4.12% year-to-date and 6.13% over the past year, with a trading range between $81.60 and $94.03 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 23.90% of its portfolio, followed by Financials and Consumer Staples [4] - Microsoft Corporation (MSFT) is the largest holding at approximately 2.45% of total assets, with the top 10 holdings accounting for about 22.34% of total assets under management [5] Group 4: Risk and Alternatives - FTCS aims to match the performance of The Capital Strength Index, which focuses on well-capitalized companies with strong market positions [6] - The ETF has a beta of 0.80 and a standard deviation of 12.98% over the trailing three-year period, indicating a medium risk profile [7] - FTCS holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Large Cap Blend market segment [8]