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Is First Trust International Developed Capital Strength ETF (FICS) a Strong ETF Right Now?

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A smart beta exchange traded fund, the First Trust International Developed Capital Strength ETF (FICS - Free Report) debuted on 12/15/2020, and offers broad exposure to the Foreign Large Growth ETF category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is sponsored by First Trust Advisors. It has amassed assets over $227.07 million, making it one of the average sized ETFs in the Foreign Large Growth ETF. Before fees and expenses, this particular fund seeks to match the performance of the INTERNATIONAL DEVLPD CAPITAL STRENGTH ID.

The International Developed Capital Strength Index provides exposure to well-capitalized companies in the developed markets outside of the U.S. with strong market positions that have the potential to provide their stockholders with a greater degree of stability and performance over time.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for this ETF are 0.70%, making it on par with most peer products in the space.

FICS's 12-month trailing dividend yield is 2.30%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

When you look at individual holdings, Gea Group Ag (G1A.GY) accounts for about 2.18% of the fund's total assets, followed by Royal Bank Of Canada (RY.CN) and Chocoladefabriken Lindt & Spruengli Ag (participation Certificates) (LISP.SW).

FICS's top 10 holdings account for about 21.21% of its total assets under management.

Performance and Risk

So far this year, FICS has gained about 18.08%, and it's up approximately 16.75% in the last one year (as of 07/28/2025). During this past 52-week period, the fund has traded between $33.47 and $40.22.

The ETF has a beta of 0.76 and standard deviation of 14.70% for the trailing three-year period. With about 56 holdings, it effectively diversifies company-specific risk .

Alternatives

First Trust International Developed Capital Strength ETF is not a suitable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. Instead, there are other ETFs in the space which investors should consider.

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) tracks Dorsey Wright Developed Markets Technical Leaders Index and the Invesco S&P International Developed Quality ETF (IDHQ) tracks S&P Quality Developed ex US LargeMidCap Index. Invesco Dorsey Wright Developed Markets Momentum ETF has $393.72 million in assets, Invesco S&P International Developed Quality ETF has $475.42 million. PIZ has an expense ratio of 0.80% and IDHQ changes 0.29%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Growth ETF

Bottom Line

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.

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