Is First Trust Capital Strength ETF (FTCS) a Strong ETF Right Now?

Core Insights - The First Trust Capital Strength ETF (FTCS) offers investors exposure to the Style Box - Large Cap Blend category and has amassed over $8.42 billion in assets, making it one of the largest ETFs in this segment [1][5]. Investment Strategy - Smart beta ETFs, like FTCS, are designed to outperform traditional market capitalization weighted indexes by selecting stocks based on specific fundamental characteristics [2][3]. - FTCS tracks the Capital Strength Index, which is an equal-dollar weighted index focusing on well-capitalized companies with strong financial metrics [6]. Cost and Performance - FTCS has an annual operating expense of 0.52% and a 12-month trailing dividend yield of 1.21%, which is competitive within its peer group [7]. - The ETF has shown a performance increase of approximately 5.18% year-to-date and 8.12% over the past year, with a trading range between $81.60 and $94.03 in the last 52 weeks [11]. Sector Exposure and Holdings - The ETF's largest sector allocation is in Industrials at 23.6%, followed by Financials and Consumer Staples [8]. - Microsoft Corporation (MSFT) is the largest individual holding at 2.54% of total assets, with the top 10 holdings comprising about 22.99% of total assets under management [9]. Risk Profile - FTCS has a beta of 0.79 and a standard deviation of 12.87% over the trailing three-year period, indicating a medium risk profile with effective diversification across 51 holdings [11].