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Is First Trust International Developed Capital Strength ETF (FICS) a Strong ETF Right Now?
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A smart beta exchange traded fund, the First Trust International Developed Capital Strength ETF (FICS - Free Report) debuted on 12/15/2020, and offers broad exposure to the Foreign Large Growth ETF category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
FICS is managed by First Trust Advisors, and this fund has amassed over $214.43 million, which makes it one of the average sized ETFs in the Foreign Large Growth ETF. This particular fund, 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
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.
Operating expenses on an annual basis are 0.70% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.91%.
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.
Looking at individual holdings, Imperial Oil Ltd. (IMO.CN) accounts for about 3.07% of total assets, followed by Rio Tinto Plc (RIO.LN) and Bhp Group Limited (BHP.AU).
FICS's top 10 holdings account for about 24.95% of its total assets under management.
Performance and Risk
The ETF return is roughly 3.52% so far this year and is up roughly 5.45% in the last one year (as of 06/12/2026). In the past 52-week period, it has traded between $37.37 and $42.48
The ETF has a beta of 0.72 and standard deviation of 13.23% for the trailing three-year period. With about 57 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 $757.63 million in assets, Invesco S&P International Developed Quality ETF has $852.26 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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Is First Trust International Developed Capital Strength ETF (FICS) a Strong ETF Right Now?
A smart beta exchange traded fund, the First Trust International Developed Capital Strength ETF (FICS - Free Report) debuted on 12/15/2020, and offers broad exposure to the Foreign Large Growth ETF category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
FICS is managed by First Trust Advisors, and this fund has amassed over $214.43 million, which makes it one of the average sized ETFs in the Foreign Large Growth ETF. This particular fund, 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
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.
Operating expenses on an annual basis are 0.70% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.91%.
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.
Looking at individual holdings, Imperial Oil Ltd. (IMO.CN) accounts for about 3.07% of total assets, followed by Rio Tinto Plc (RIO.LN) and Bhp Group Limited (BHP.AU).
FICS's top 10 holdings account for about 24.95% of its total assets under management.
Performance and Risk
The ETF return is roughly 3.52% so far this year and is up roughly 5.45% in the last one year (as of 06/12/2026). In the past 52-week period, it has traded between $37.37 and $42.48
The ETF has a beta of 0.72 and standard deviation of 13.23% for the trailing three-year period. With about 57 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 $757.63 million in assets, Invesco S&P International Developed Quality ETF has $852.26 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.