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Is First Trust Capital Strength ETF (FTCS) a Strong ETF Right Now?
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Making its debut on 07/06/2006, smart beta exchange traded fund First Trust Capital Strength ETF (FTCS - Free Report) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $7.86 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Blend. FTCS is managed by First Trust Advisors. This particular fund seeks to match the performance of the The Capital Strength Index before fees and expenses.
The Capital Strength Index is an equal-dollar weighted index which provides exposure to well-capitalized companies with strong market positions based on strong balance sheets, high degree of liquidity, ability to generate earnings growth & record financial strength & profit growth.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.52% for this ETF, which makes it on par with most peer products in the space.
FTCS's 12-month trailing dividend yield is 1.11%.
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.
This ETF has heaviest allocation in the Financials sector - about 23.8% of the portfolio. Industrials and Consumer Staples round out the top three.
Looking at individual holdings, Eog Resources, Inc. (EOG) accounts for about 2.48% of total assets, followed by Gilead Sciences, Inc. (GILD) and Lockheed Martin Corporation (LMT).
FTCS's top 10 holdings account for about 22.48% of its total assets under management.
Performance and Risk
Year-to-date, the First Trust Capital Strength ETF has gained about 1.37% so far, and was up about 9.24% over the last 12 months (as of 04/24/2026). FTCS has traded between $86.91 $99.44 in this past 52-week period.
The fund has a beta of 0.78 and standard deviation of 11.11% for the trailing three-year period, which makes FTCS a medium risk choice in this particular space. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Capital Strength ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $780.21 billion in assets, Vanguard 500 Index Fund ETF Shares has $889.06 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
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 Blend
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 Capital Strength ETF (FTCS) a Strong ETF Right Now?
Making its debut on 07/06/2006, smart beta exchange traded fund First Trust Capital Strength ETF (FTCS - Free Report) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $7.86 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Blend. FTCS is managed by First Trust Advisors. This particular fund seeks to match the performance of the The Capital Strength Index before fees and expenses.
The Capital Strength Index is an equal-dollar weighted index which provides exposure to well-capitalized companies with strong market positions based on strong balance sheets, high degree of liquidity, ability to generate earnings growth & record financial strength & profit growth.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.52% for this ETF, which makes it on par with most peer products in the space.
FTCS's 12-month trailing dividend yield is 1.11%.
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.
This ETF has heaviest allocation in the Financials sector - about 23.8% of the portfolio. Industrials and Consumer Staples round out the top three.
Looking at individual holdings, Eog Resources, Inc. (EOG) accounts for about 2.48% of total assets, followed by Gilead Sciences, Inc. (GILD) and Lockheed Martin Corporation (LMT).
FTCS's top 10 holdings account for about 22.48% of its total assets under management.
Performance and Risk
Year-to-date, the First Trust Capital Strength ETF has gained about 1.37% so far, and was up about 9.24% over the last 12 months (as of 04/24/2026). FTCS has traded between $86.91 $99.44 in this past 52-week period.
The fund has a beta of 0.78 and standard deviation of 11.11% for the trailing three-year period, which makes FTCS a medium risk choice in this particular space. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Capital Strength ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $780.21 billion in assets, Vanguard 500 Index Fund ETF Shares has $889.06 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
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 Blend
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.