We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is First Trust International Developed Capital Strength ETF (FICS) a Strong ETF Right Now?
Read MoreHide Full Article
Making its debut on 12/15/2020, smart beta exchange traded fund First Trust International Developed Capital Strength ETF (FICS - Free Report) provides investors broad exposure to the Foreign Large Growth ETF category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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
Because the fund has amassed over $226.13 million, this makes it one of the average sized ETFs in the Foreign Large Growth ETF. FICS is managed by First Trust Advisors. FICS, before fees and expenses, 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 this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.82%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, The Toronto-dominion Bank (TD.CN) accounts for about 2.31% of the fund's total assets, followed by Rio Tinto Plc (RIO.LN) and Great-west Lifeco Inc. (GWO.CN).
Its top 10 holdings account for approximately 22.45% of FICS's total assets under management.
Performance and Risk
The ETF return is roughly 1.73% so far this year and is up roughly 17.26% in the last one year (as of 02/03/2026). In the past 52-week period, it has traded between $33.47 and $40.97
FICS has a beta of 0.75 and standard deviation of 12.63% 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 $584.19 million in assets, Invesco S&P International Developed Quality ETF has $642.01 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is First Trust International Developed Capital Strength ETF (FICS) a Strong ETF Right Now?
Making its debut on 12/15/2020, smart beta exchange traded fund First Trust International Developed Capital Strength ETF (FICS - Free Report) provides investors broad exposure to the Foreign Large Growth ETF category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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
Because the fund has amassed over $226.13 million, this makes it one of the average sized ETFs in the Foreign Large Growth ETF. FICS is managed by First Trust Advisors. FICS, before fees and expenses, 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 this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.82%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, The Toronto-dominion Bank (TD.CN) accounts for about 2.31% of the fund's total assets, followed by Rio Tinto Plc (RIO.LN) and Great-west Lifeco Inc. (GWO.CN).
Its top 10 holdings account for approximately 22.45% of FICS's total assets under management.
Performance and Risk
The ETF return is roughly 1.73% so far this year and is up roughly 17.26% in the last one year (as of 02/03/2026). In the past 52-week period, it has traded between $33.47 and $40.97
FICS has a beta of 0.75 and standard deviation of 12.63% 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 $584.19 million in assets, Invesco S&P International Developed Quality ETF has $642.01 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.