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Is First Trust Growth Strength ETF (FTGS) a Strong ETF Right Now?
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The First Trust Growth Strength ETF (FTGS - Free Report) was launched on 10/25/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
FTGS is managed by First Trust Advisors, and this fund has amassed over $1.24 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. 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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.60% for this ETF, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 0.34%.
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 in the Information Technology sector - about 29.6% of the portfolio. Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Newmont Corporation (NEM) accounts for about 3.07% of the fund's total assets, followed by United Therapeutics Corporation (UTHR) and Monolithic Power Systems, Inc. (MPWR).
Its top 10 holdings account for approximately 25.24% of FTGS's total assets under management.
Performance and Risk
The ETF has added about 12.86% so far this year and is up about 8.11% in the last one year (as of 11/12/2025). In the past 52-week period, it has traded between $26.62 and $36.58
The fund has a beta of 1.12 and standard deviation of 16.96% for the trailing three-year period. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Growth Strength ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $203.16 billion in assets, Invesco QQQ has $408.8 billion. VUG has an expense ratio of 0.04% and QQQ changes 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth
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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Is First Trust Growth Strength ETF (FTGS) a Strong ETF Right Now?
The First Trust Growth Strength ETF (FTGS - Free Report) was launched on 10/25/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
FTGS is managed by First Trust Advisors, and this fund has amassed over $1.24 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. 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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.60% for this ETF, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 0.34%.
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 in the Information Technology sector - about 29.6% of the portfolio. Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Newmont Corporation (NEM) accounts for about 3.07% of the fund's total assets, followed by United Therapeutics Corporation (UTHR) and Monolithic Power Systems, Inc. (MPWR).
Its top 10 holdings account for approximately 25.24% of FTGS's total assets under management.
Performance and Risk
The ETF has added about 12.86% so far this year and is up about 8.11% in the last one year (as of 11/12/2025). In the past 52-week period, it has traded between $26.62 and $36.58
The fund has a beta of 1.12 and standard deviation of 16.96% for the trailing three-year period. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Growth Strength ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $203.16 billion in assets, Invesco QQQ has $408.8 billion. VUG has an expense ratio of 0.04% and QQQ changes 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth
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.