First Trust has announced the launch of the First Trust Europe Growth Strength UCITS ETF (FTEG) on the London Stock Exchange and Borsa Italiana.
FTEG is designed to provide investors with transparent and liquid exposure to high-quality European companies with robust growth metrics, positioning them well to weather a wide variety of market conditions.
The new UCITS ETF targets companies with robust, well-defined fundamentals that have demonstrated strong performance and may be positioned for above-average growth compared to the broader market. FTEG tracks The European Growth Strength Index, which employs a rigorous, rules-based methodology to select high-quality growth stocks.
“We are thrilled to introduce FTEG to European investors,” says Rupert Haddon, Managing Director at First Trust Global Portfolios. “In today’s fast-changing markets, we believe investors are seeking exposure to companies that can demonstrate resilience and strong potential for growth. FTEG offers transparent and liquid access to a portfolio of companies with solid fundamentals and long-term growth potential, aiming to provide greater stability and performance across various market conditions.”
Key features of FTEG include:
- Quality focus: Selects well-capitalised European companies (at least USD250 million in cash) with high return on equity (>15 per cent), low financial leverage (debt to market cap ratio <30 per cent), at least four years worth of trading data, and positive shareholder equity.
- Growth emphasis: Ranks quality companies based on three-year revenue growth and three-year cash flow growth, selecting the top 50 with the highest combined scores.
- Balanced approach: Equally-weighted portfolio of 50 stocks, rebalanced semi-annually in March and September.
- Sector diversification: Maximum of 15 securities from any single industry to ensure diversification.
- Transparent methodology: Rules-based stock selection process for clarity and consistency.
FTEG is now available for trading on the London Stock Exchange in USD (Ticker: FTEG LN) and GBP (Ticker: FTES LN). The fund has a Total Expense Ratio (TER) of 0.60 per cent.
