FTGS ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A smart beta ETF that invests equally in 50 large-cap US stocks with strong financial health and high growth momentum.
SubscribeWhat Is This ETF?
The ETF tracks the Growth Strength™ Index, which selects 50 companies from the top 500 in the Nasdaq US Benchmark Index based on financial soundness and growth. Its defining feature is that it considers both a company's actual earnings power and its financial stability.
It concentrates on high-quality growth stocks that have passed stricter financial filters than a simple index-tracking approach, making it suitable for investors seeking long-term excess returns.
Launched in 2022 by First Trust, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | Growth Strength™ Index |
| Management Style | Passive (equal weight) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.60% |
From among the companies that pass strict financial criteria, such as holding a minimum level of cash and equivalents, a low debt ratio, and a high return on equity (ROE), the index picks those with clear revenue and cash flow growth. The 50 selected stocks are held at equal weights to prevent concentration in any single name.
- Strict financial soundness filtering helps provide downside resilience
- A portfolio centered on high-quality stocks that combine growth and profitability
Size and Costs
Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.60% per year.
Unlike peers in the same category such as DGRO and BGIG, which focus on dividend growth, FTGS places greater weight on fundamental strength and growth indicators. Because it uses an equal-weight strategy, it offers greater diversification than typical growth ETFs that are skewed toward the largest tech stocks by market capitalization.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAmid strength in the technology and industrials sectors, high-quality stocks with solid earnings have performed well, and the fund has maintained relatively resilient returns within its category.
As preference grows for high-quality stocks with strong financials during periods of rising market volatility, steady inflows have been observed from investors seeking stable growth.
Pros and Cons
Its strength is stable growth centered on financially sound companies, but during sharp short-term rallies it may lag market-cap-weighted indexes in upside momentum.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Among the funds shown in the table, DGRO focuses on high-quality dividend growth stocks, while NUGO focuses on capturing aggressive growth opportunities. Investors who want typical US large-cap growth exposure can consider SCHG or VUG, and those seeking growth in the Nasdaq 100 Index may look at QQQ as well. For broader growth stock exposure, SPYG is also a suitable comparison.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DGRO | iShares Core Dividend Growth ETF | $81.22 | +1.4% | $44.7B | 0.08% | 1.84% | +18.9% |
 NUGO | Nuveen Growth Opportunities ETF | $42.80 | -0.9% | $2.4B | 0.50% | - | +2.5% |
 COWG | Pacer US Large Cap Cash Cows Growth Leaders ETF | $40.43 | -1.6% | $2.4B | 0.49% | 0.74% | +10.9% |
 BGIG | Bahl & Gaynor Income Growth ETF | $37.39 | +1.0% | $2.3B | 0.45% | 1.66% | +16.9% |
 SMIG | Bahl & Gaynor Small/Mid Cap Income Growth ETF | $32.47 | +1.7% | $1.5B | 0.60% | 1.66% | +14.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| PANW | Palo Alto Networks Inc | 0.04% | $380.57 | -3.5% | $311.6B | 742.6 | - |
| FTNT | Fortinet Inc | 0.04% | $139.10 | -20.1% | $102.1B | 45.2 | - |
 UTHR | United Therapeutics Corp | 0.03% | $593.54 | +1.2% | $25.5B | 21.2 | - |
| LLY | Lilly(Eli) & Co | 0.03% | $1373.70 | +6.6% | $1.29T | 46.7 | 0.5% |
 NBIX | Neurocrine Biosciences Inc | 0.03% | $146.38 | +0.6% | $14.9B | 21.4 | - |
| BKR | Baker Hughes Co | 0.03% | $54.51 | -0.3% | $54.1B | 18.7 | 1.71% |
| MNST | Monster Beverage Corp | 0.02% | $46.35 | +1.5% | $90.8B | 43.0 | - |
| ROST | Ross Stores Inc | 0.02% | $232.30 | +1.9% | $74.2B | 28.1 | 0.76% |
| CDNS | Cadence Design Systems Inc | 0.02% | $342.75 | +0.1% | $94.4B | 68.1 | - |
| SLB | SLB Ltd | 0.02% | $53.81 | +0.1% | $79.4B | 26.2 | 2.19% |
Investor Checkpoints
Here are several key factors to review before investing in the FTGS ETF. It is important to approach it with a thorough understanding of the distinctive characteristics and risk factors of a quality growth strategy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 Financial Filtering Criteria | Confirm the appropriateness of selection criteria such as ROE and debt ratio | Needs review |
| 📈 Sector Composition Trends | Monitor changes in the weights of major sectors such as information technology and industrials | Adequate |
| 💵 Performance vs. Fees | Compare cost and return competitiveness against similar strategy products | Holding steady |
| ⚖️ Equal-Weight Effect | Understand differences in volatility and performance versus market-cap-weighted approaches | Stable |
Note that, because of its strict financial criteria, early-stage growth companies that drive disruptive innovation but are not yet profitable may be excluded from the portfolio.
This ETF offers a portfolio of high-quality stocks that can be an effective alternative for conservative growth investors who value both financial stability and corporate growth.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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