This is an actively managed fund that carefully selects and invests in companies with strong competitive positions across developed and emerging markets outside the United States. It uses strengthening corporate moats and a positive corporate culture as its core indicators, aiming to outperform the market over the long term.

It suits investors who want excess returns through the selection of high-quality growth companies rather than simple index tracking, and who are interested in active investing across global markets.

First Trust launched this actively managed ETF in 2020.

Based on the manager's bottom-up research, the fund concentrates its investments in roughly 40 to 50 companies. It evaluates each company's economic moat and the health of the organizational culture that supports it, then selects high-quality stocks whose competitive advantages can endure and holds them for the long term.

• A proprietary stock selection process centered on qualitative analysis
• Flexible management that is not bound by country or benchmark weightings

Assets under management (AUM) stand at $2.1B, and the expense ratio is 0.85% per year.

Its expense ratio is somewhat higher than that of broad passive ETFs such as VEA and IEFA shown in the table, but its distinguishing feature is that active management seeks both downside protection in falling markets and excess returns in rising markets.

The fund responds sensitively to changes in valuation multiples across global growth stocks and to the interest rate environment, and it can post returns that differ from the index depending on the earnings growth of individual companies.

Capital seeking growth opportunities in markets outside the US has been flowing in, and investor interest tends to concentrate especially in periods when preference for high-quality growth stocks rises.

This is an actively managed growth product that invests in innovative companies across global markets, focusing on qualitative growth and moats.

If you want to invest in developed markets outside the US at a lower cost, VEA or IEFA could be alternatives, and if you want exposure to every market worldwide, you can also consider VT or VXUS. If you want broad exposure rather than a specific style, a flagship index product such as EFA can also be useful.

These are the key items to review when considering an investment in WCMI. It is advisable to decide whether to invest after comprehensively analyzing the characteristics of active management and the global market environment.

If the active manager makes poor stock selections, the fund risks underperforming the index, and in a global recession it may be exposed to simultaneous declines in emerging and developed stock markets.

This is an active product suited to investors who want to discover competitive growth companies around the world beyond the US market. It is recommended for investors who expect its distinctive philosophy of valuing corporate culture to translate into long-term results.