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 $10bn 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.
To be eligible for inclusion as ‘quality’, stocks must be well-capitalised – over $1bn 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 (pictured), managing director at First Trust Global Portfolios, said: “In today’s dynamic market environment, we believe investors are seeking exposure to companies that can demonstrate resilience and consistent growth.”
“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.”
First Trust believes the ETF is positioned for above-average growth compared to the wider market.
The new launch follows extensions of the firm’s factor and thematic ranges.
