Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the First Trust Growth Strength ETF (FTGS Quick QuoteFTGS - Free Report) is a passively managed exchange traded fund launched on October 25, 2022.

The fund is sponsored by First Trust Advisors. It has amassed assets over $1.23 billion, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.6%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 0.33%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 30.6% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Vertiv Holdings Co (VRT) accounts for about 2.91% of total assets, followed by Broadcom Inc. (AVGO) and Nvidia Corporation (NVDA).

The top 10 holdings account for about 24.93% of total assets under management.

Performance and Risk

FTGS seeks to match the performance of the THE GROWTH STRENGTH INDEX before fees and expenses. The Growth Strength Index provides exposure to a mix of domestic equities with filters for liquidity, return on equity, long-term debt, revenue and cash flow growth.

The ETF has gained about 12.13% so far this year and is up about 14.89% in the last one year (as of 08/25/2025). In the past 52-week period, it has traded between $26.62 and $35.51.

The ETF has a beta of 1.13 and standard deviation of 17.78% for the trailing three-year period. With about 51 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust Growth Strength ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FTGS is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $184.39 billion in assets, Invesco QQQ has $369.27 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

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.