First Trust Advisors (First Trust) has launched a new fund, the First Trust International Developed Capital Strength ETF, which provides access to international companies with a high degree of liquidity, the ability to generate earnings growth, and a record of financial strength and profit growth, via the The International Developed Capital Strength Index.
Also included is a volatility screen that seeks out those companies with lower historic risk and favours companies with consistent historical security price performance.
“2020 has been a reminder of the importance of quality for navigating uncertain times. In our view, this applies just as much for international stocks as it does for US stocks,” says Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.
Investing outside of the US may present opportunities to participate in the long-term growth potential of foreign companies. FICS seeks to provide a simplified way to gain exposure to well-capitalised non-US companies in developed markets with strong market positions that have the potential to provide their stockholders with a greater degree of stability and performance over time.
“We believe this ETF will be an effective tool for investment professionals seeking high quality exposure to developed international stocks,” says Issakainen.