First Trust has announced the launch of the First Trust Quality Growth Strength UCITS ETF on the London Stock Exchange.
The firm writes that FTGS is designed to provide investors with transparent and liquid exposure to quality growth stocks through a time-tested investment approach.
The firm writes that the new UCITS ETF targets companies with robust, well-defined fundamentals that have demonstrated strong performance and we believe are positioned for above-average growth compared to the broader market.
“We are excited to introduce our quality growth core ETF to European investors, leveraging our flagship strength strategy,” says Rupert Haddon, Managing Director at First Trust Global Portfolios.
“FTGS buys companies with strong balance sheets, very little debt, growing cash flows and earnings with high ROEs. 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 solid fundamentals and strong growth potential, aiming to provide greater stability and long-term
performance across various market conditions.”
Key Features of FTGS Include:
•
Quality Focus: Selects well-capitalised companies (over USD1 billion in cash) with high return on equity (>15 per cent) and low financial leverage (debt to market cap ratio <30 per cent).
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Growth Emphasis: Ranks companies based on three-year revenue growth and three-year cash flow growth, selecting the top 50 with the highest combined scores.
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Balanced Approach: Equally-weighted portfolio of 50 stocks, rebalanced quarterly.
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Sector Diversification: Maximum of 15 securities from any single industry to ensure
diversification.
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Transparent Methodology: Rules-based stock selection process for clarity and consistency.
