Inflation Data - The U.S. annual inflation rate accelerated to 2.9% in August 2025, the highest since January, after remaining at 2.7% in June and July [2] - On a monthly basis, the CPI rose 0.4%, exceeding forecasts of 0.3%, driven by persistent gasoline prices and stronger food inflation [3] - Core inflation remained steady at 3.1%, with a monthly increase in core CPI of 0.3%, consistent with July's growth [4] Economic Indicators - The U.S. economy grew at an annualized rate of 3.3% in Q2 of 2025, rebounding from a 0.5% contraction in Q1, with the figure revised slightly higher from the first estimate of 3% [6] - For Q3 of 2025, total S&P 500 index earnings are expected to increase by 5.1% year-over-year, supported by a 5.9% rise in revenues, with positive revisions trends noted [7] Federal Reserve Policy - There is a 92.5% chance of a 25-basis point rate cut in the September meeting, while the likelihood of a 50-basis point cut is 7.5%, with expectations shifting due to the recent inflation data [8] Investment Opportunities - In light of the economic conditions and potential moderate rate cuts, several large-cap blend ETFs are highlighted as attractive options, including: - First Trust Dow 30 Equal Weight ETF (EDOW) – Zacks Rank 2 (Buy) [9] - iShares Core S&P Total U.S. Stock Market ETF (ITOT) – Zacks Rank 2 [9] - iShares Core S&P 500 ETF (IVV) – Zacks Rank 1 (Strong Buy) [9] - iShares S&P 100 ETF (OEF) – Zacks Rank 2 [9] - Invesco S&P 500 Quality ETF (SPHQ) – Zacks Rank 2 [10]

Core Viewpoint - The First Trust Dow 30 Equal Weight ETF (EDOW) provides broad exposure to the Large Cap Blend segment of the US equity market, with a focus on stability and predictable cash flows from large cap companies [1][2]. Group 1: Fund Overview - EDOW is a passively managed ETF launched on August 8, 2017, and has accumulated assets of over $224.51 million, categorizing it as an average-sized ETF in its segment [1]. - The ETF has an annual operating expense ratio of 0.50% and a 12-month trailing dividend yield of 1.39%, which is competitive within its peer group [3]. Group 2: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising approximately 20.40% of the portfolio, followed by Financials and Consumer Discretionary [4]. - Nike, Inc. (class B) accounts for about 3.86% of total assets, with the top 10 holdings representing around 35.29% of total assets under management [5]. Group 3: Performance Metrics - EDOW aims to match the performance of the Dow Jones Industrial Average Equal Weight Index, with a year-to-date return of approximately 8.35% and a one-year return of about 14.55% as of July 29, 2025 [6]. - The ETF has traded between $32.19 and $39.21 over the past 52 weeks, indicating a stable price range [6]. Group 4: Risk and Alternatives - The ETF has a beta of 0.89 and a standard deviation of 14.39% over the trailing three-year period, suggesting lower volatility compared to the market [7]. - EDOW holds a Zacks ETF Rank of 2 (Buy), indicating strong potential for investors seeking exposure to the Large Cap Blend segment [8]. Group 5: Competitive Landscape - Other ETFs in the same space include the SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO), with assets of $651.02 billion and $702.71 billion respectively, and lower expense ratios of 0.09% and 0.03% [9]. Group 6: Market Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10].