ETF provider First Trust has expanded its offerings to European investors with the launch of the First Trust Quality Growth Strength Ucits ETF (FTGS) on the London Stock Exchange ( LSE).
The fund aims to provide transparent and liquid exposure to quality growth stocks through a proven investment strategy, shared the provider.
The new Ucits ETF builds on First Trust’s ‘Strength’ ETF range, which has accumulated over $10 billion in assets globally over the past 15 years. The new Ucits ETF targets companies with robust, well-defined fundamentals that have demonstrated strong performance, focusing on firms positioned for above-average growth compared to the broader market.
Key features of the offering include a focus on quality, selecting well-capitalised companies with over $1 billion in cash, high return on equity (ROE > 15%), and low financial leverage (debt to market cap ratio < 30%). The ETF ranks companies based on three-year revenue and cash flow growth, choosing the top 50 with the strongest combined scores. The equally-weighted portfolio of 50 stocks is rebalanced quarterly, with no more than 15 securities from any single industry to ensure sector diversification.
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This latest addition to First Trust’s Ucits ETF lineup brings the total to 34, covering single-country, regional, and global strategies across equity, fixed income and thematic sectors.
Rupert Haddon, managing director at First Trust Global Portfolios, said: “FTGS buys companies with strong balance sheets, very little debt, growing cash flows and earnings with high ROEs. In today’s dynamic market environment, we believe investors are seeking exposure to companies that can demonstrate resilience and consistent growth. This expansion of our Ucits range offers European investors a transparent and liquid way to access a portfolio of companies with solid fundamentals and strong growth potential, aiming to provide greater stability and long-term performance across various market conditions.”
