First Trust Portfolios Canada has launched the First Trust International Capital Strength ETF (FINT CN) on Toronto Stock Exchange. The actively managed fund invests in equity securities of developed market companies, excluding the US and Canada, with a focus on fundamental strength and growth.
FINT is available to trade on Toronto Stock Exchange.
“We believe financial advisors are seeking concentrated actively managed ETF portfolios that make greater use of the inherent cost advantages of the ETF structure relative to actively managed mutual funds,” said Karl Cheong, head of distribution at First Trust Canada. “We believe this actively managed ETF provides an efficient tool for financial advisors to use when allocating to developed international equity markets, aided by First Trust Advisors’ insight and expertise in security selection and portfolio management.”
The fund’s constituent selection process seeks to identify well-capitalized companies that have strong balance sheets. According to First Trust, well-capitalized companies have the potential to provide their shareholders with a greater degree of stability and performance over time.
To be eligible for inclusion in the fund, constituents must have a market cap above $5 billion, cash reserves in excess of $500 million, a long-term debt to equity ratio less than 30%, and a return on equity greater than 15%.
Once the eligible universe is reduced through the screening process described above, the fund’s manager selects stocks with perceived attractive valuations. The ETF currently has 41 holdings which are approximately equal-weighted within the portfolio.
The ETF is primarily exposed to stocks from three countries: Germany (22.4%), Japan (20.0%), and the UK (17.4%). The largest sector exposures are consumer discretionary (22.5%), healthcare (17.7%), information technology (17.4%), industrials (14.7%), and consumer staples (7.4%).
FINT has a management fee of 0.70%. Income generated within the fund’s portfolio is distributed to investors on a quarterly basis.