Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the First Trust Growth Strength ETF (FTGS Quick QuoteFTGS - Free Report) , a passively managed exchange traded fund launched on October 25, 2022.

The fund is sponsored by First Trust Advisors. It has amassed assets over $1.29 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.6%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 0.04%.

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.

This ETF has heaviest allocation to the Information Technology sector -- about 26.4% of the portfolio. Healthcare and Financials round out the top three.

Looking at individual holdings, Marvell Technology, Inc. (MRVL) accounts for about 2.83% of total assets, followed by Palantir Technologies Inc. (class A) (PLTR) and Microsoft Corporation (MSFT).

The top 10 holdings account for about 24.32% of total assets under management.

Performance and Risk

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.

The ETF return is roughly 7.95% so far this year and is up roughly 9.26% in the last one year (as of 11/10/2026). In the past 52-week period, it has traded between $33.11 and $39.99.

The ETF has a beta of 1.02 and standard deviation of 16.45% for the trailing three-year period. With about 51 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust Growth Strength ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FTGS is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Morningstar Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Morningstar Growth ETF has $219.93 billion in assets, Invesco QQQ has $461.56 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

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.