First Trust Unveils Quality Growth ‘Strength’ ETF in Europe
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First Trust has extended its suite of Strength ETFs with the launch of a quality growth equity fund.
The First Trust Growth Strength UCITS ETF (FTGS), listed on the London Stock Exchange, had a total expense ratio (TER) of 0.60%.
The range has demonstrated strong asset gathering ability, amassing more than $10 billion globally over its 15-year history.
Its latest offering, FTGS, is a sector-diversified, equally-weighted portfolio of 50 stocks tracking the Nasdaq Quality Growth index.
First Trust Enters Europe with New Strength ETF
To be eligible for inclusion as "quality," stocks must be well-capitalized—over $1 billion in cash—boast a return on equity exceeding 15% and carry a debt to market cap ratio below 30%.
Eligible companies are then ranked by a combined three-year revenue and cash flow growth score, with the top 50 selected.
Rupert Haddon, managing director at First Trust Global Portfolios, said, “This expansion of our UCITS range offers European investors a transparent and liquid way to access a portfolio of companies with strong fundamentals, and strong growth potential, aiming to provide greater stability and long-term performance across various market conditions.”
With 166 ETFs traded on the U.S. markets, First Trust ETFs have total assets under management of $138.79 billion, with an average expense ratio of 0.73%. Now having entered Europe, First Trust believes this new Strength ETF is positioned for above-average growth compared to the wider market.
This article was originally published on our sister publication, etfstream.com.