First Trust has introduced the First Trust Quality Growth Strength UCITS ETF to the London Stock Exchange, focusing investments on quality growth stocks.
The strategy will hold 50 stocks, comprised of companies with over $1bn in cash, a return of over 15% on equity, and a debt-to-market cap ratio of under 30%. Holdings will be chosen through a combination ranking of their three-year revenue growth and three-year cash flow growth. It will cap each industry at a maximum of 15 stocks, in order to maintain diversity in the portfolio.
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First Trust now has a total of 34 UCITS ETF offerings, across thematic, factor, and smart beta ETFs. It launched its first ETF in 2005.
Rupert Haddon, managing director at First Trust Global Portfolios, said: “FTGS buys companies with strong balance sheets, very little debt, growing cash flows and earnings with high ROEs. In today’s dynamic market environment, we believe investors are seeking exposure to companies that can demonstrate resilience and consistent growth.
“This expansion of our UCITS range offers European investors a transparent and liquid way to access a portfolio of companies with solid fundamentals and strong growth potential, aiming to provide greater stability and long-term performance across various market conditions.”
