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

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Capital Strength ETF (FTCS) is a passively managed exchange traded fund launched on 07/06/2006.The fund is sponsored by First Trust Advisors. It has amassed assets over $8.81 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendLarge cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.54%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.34%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 25.80% of the portfolio. Industrials and Consumer Staples round out the top three.Looking at individual holdings, Lockheed Martin Corporation (LMT) accounts for about 2.39% of total assets, followed by Aflac Incorporated (AFL) and Ameriprise Financial, Inc. (AMP).The top 10 holdings account for about 21.78% of total assets under management.Performance and RiskFTCS seeks to match the performance of the The Capital Strength Index before fees and expenses. The Capital Strength Index is an equal-dollar weighted index which provides exposure to well-capitalized companies with strong market positions based on strong balance sheets, high degree of liquidity, ability to generate earnings growth & record financial strength & profit growth.The ETF has added about 12.41% so far this year and is up about 23.51% in the last one year (as of 11/04/2024). In the past 52-week period, it has traded between $74.38 and $92.73.The ETF has a beta of 0.84 and standard deviation of 13.59% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust Capital Strength ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FTCS is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $540.81 billion in assets, SPDR S&P 500 ETF has $588.15 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Capital Strength ETF (FTCS): ETF Research Reports Lockheed Martin Corporation (LMT): Free Stock Analysis Report Aflac Incorporated (AFL): Free Stock Analysis Report Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks