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

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

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

The fund is managed by First Trust Advisors. FICS has been able to amass assets over $215.51 million, making it one of the average sized ETFs in the Foreign Large Growth ETF. Before fees and expenses, FICS 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

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 0.70% for FICS, 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

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Taking into account individual holdings, Royal Bank Of Canada (RY.CN) accounts for about 2.43% of the fund's total assets, followed by Astrazeneca Plc (AZN.LN) and Gsk Plc (GSK.LN).

Its top 10 holdings account for approximately 23.11% of FICS's total assets under management.

Performance and Risk

So far this year, FICS has added roughly 16.53%, and is up roughly 11.24% in the last one year (as of 12/03/2025). During this past 52-week period, the fund has traded between $33.47 and $40.22.

The ETF has a beta of 0.75 and standard deviation of 12.92% 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 $493.44 million in assets, Invesco S&P International Developed Quality ETF has $532.02 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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