First Trust unveils global quality income ETF

Nov 22nd, 2023 | By | Category: Equities

First Trust Advisors has introduced an ETF in the US providing actively managed exposure to a global portfolio of high-quality, income-producing securities.

First Trust unveils global quality income ETF

The fund invests in a portfolio of high-quality income-producing securities.

The First Trust Active Global Quality Income ETF (AGQI US) is listed on NYSE Arca with an expense ratio of 0.85%.

The fund seeks income with the potential for capital growth over the longer term by investing in a concentrated portfolio consisting of common stocks, preferred securities, and REITs. At least 40% of the portfolio will be dedicated to securities listed outside of the US with up to 20% permitted in emerging markets.

The strategy emphasizes companies capable of stable and growing dividends, identified based on fundamental factors such as high or improving return-on-equity, return-on-invested capital, financial leverage ratio, and dividend payout ratio.

The fund doesn’t restrict itself to large-cap companies, allowing investments across company sizes, geographic regions, and industries. This diversification strategy aims to balance returns and reduce portfolio risks.

As of 20 November, the ETF contained just 29 holdings with the largest positions being Microsoft (7.5%), RELX (5.5%), TotalEnergies (5.5%), Merck (5.0%), Shell (4.9%), Sanofi (4.4%), Mondelez International (4.1%), and Samsung Electronics (4.1%).

Tags: , , , , , , , ,

Leave a Comment