FTCS ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The First Trust Capital Strength ETF, which trades as FTCS, selects companies with strong financial health. It is viewed as a core alternative that combines a quality factor outlook with stable dividend characteristics, and investors should compare related funds such as QUAL and SPHQ alongside it.
SubscribeWhat Is the First Trust Capital Strength ETF?
This factor ETF tracks the Capital Strength Index and invests broadly in US large-cap and mid-cap stocks selected on the basis of balance sheet strength and market leadership.
It suits long-term investors who want diversified exposure to financially sound companies without concentration in any particular sector.
It is a passively managed (index-tracking) ETF run by First Trust.
How Does the First Trust Capital Strength ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Capital Strength Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.53% |
From the constituents of the Nasdaq US Benchmark Index, the fund selects companies with low debt levels, strong balance sheets, and a dominant market position. Sector caps limit excessive concentration, and the portfolio is reconstituted every quarter.
- Factor screening based on financial health
- A diversified structure that limits sector concentration
First Trust Capital Strength ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $7.9B, and the expense ratio is 0.53% per year.
Unlike factor ETFs focused on a specific sector, it is characterized by an even allocation to high-quality companies across multiple industries.
First Trust Capital Strength ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause it is built around high-quality stocks, it has tended to show relatively muted volatility during sharp market declines, while its gains may be somewhat limited compared with growth stocks in bull markets.
As investor interest in the quality factor continues, defensive-minded capital has flowed in steadily, though the pace of inflows and outflows may vary with interest rates and the economic cycle.
First Trust Capital Strength ETF Pros and Cons
Its strength is a diversified structure centered on financial health, while its weakness is that it can lag in growth-led bull markets.
💪 Key Strengths
⚠️ Points to Watch
First Trust Capital Strength ETF Alternative ETFs and Related Products
Because of how this ETF is classified, the comparison data shown in the table is limited. Instead, within the same quality factor family, QUAL and SPHQ are similar in nature in that they select stocks based on financial health and profitability, and DGRO can also be considered as an alternative that places more weight on dividend growth.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 GSLC | Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF | $144.28 | -1.8% | $15.2B | 0.09% | 1.03% | +9.7% |
 TILT | Northern Trust Morningstar US Market Factor Tilt ETF | $278.37 | -1.6% | $2.2B | 0.25% | 1.07% | +13.5% |
 BOUT | CapForce IBD Breakout Opportunities ETF | $40.62 | -1.6% | $14.5M | 0.80% | 0.31% | +6.5% |
 GRPZ | Invesco S&P SmallCap 600 GARP ETF | $31.54 | -1.0% | $3.2M | 0.35% | 0.84% | +20.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| EOG | EOG Resources Inc | 0.03% | $165.54 | +2.0% | $86.8B | 12.9 | 2.48% |
| CSCO | Cisco Systems Inc | 0.03% | $104.51 | -3.8% | $412.0B | 31.4 | 1.63% |
| MNST | Monster Beverage Corp | 0.03% | $47.34 | +2.1% | $92.7B | 43.9 | - |
 TROW | T. Rowe Price Group Inc | 0.02% | $103.90 | -2.6% | $22.2B | 10.5 | 4.98% |
| LIN | Linde Plc | 0.02% | $514.24 | +2.2% | $237.1B | 34.2 | 1.25% |
| ROST | Ross Stores Inc | 0.02% | $228.28 | -1.7% | $72.9B | 27.6 | 0.78% |
| JNJ | Johnson & Johnson | 0.02% | $273.20 | -0.7% | $657.7B | 41.4 | 1.96% |
| GILD | Gilead Sciences Inc | 0.02% | $170.68 | +3.1% | $211.6B | - | 1.93% |
| ADP | Automatic Data Processing Inc | 0.02% | $293.84 | +2.7% | $116.4B | 26.1 | 2.38% |
| CINF | Cincinnati Financial Corp | 0.02% | $181.19 | -0.4% | $27.8B | 10.6 | 2.08% |
First Trust Capital Strength ETF Investor Checkpoints
Here are the points to review before investing in FTCS. It is a core factor asset built on financial health, but its liquidity level and its relative performance in growth-led bull markets should be checked in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative impact over a long holding period | Annual fee applies |
| 💧 Liquidity | Daily trading value and bid-ask spread | Lower than large core ETFs |
| 📊 Factor Profile | Check the financial health screening criteria | Quality factor maintained |
| 📅 Rebalancing | Check changes in holdings at each quarterly reconstitution | Reflected regularly once per quarter |
Investors should keep in mind that the fund can lag in growth-led bull markets, and that its lower liquidity compared with large core ETFs means short-term trading can be significantly affected by bid-ask spreads.
If you want defensive, diversified exposure centered on financially sound companies, this ETF is a good fit. For pure quality factor exposure, you can also consider QUAL and SPHQ, and for a greater emphasis on dividend growth, DGRO.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 1, 2026.
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