AFMC Profile
The First Trust Active Factor Mid Cap ETF is designed to provide investors with targeted exposure to U.S.-listed equity securities of mid-capitalization companies, aiming for long-term growth. The fund invests at least 80% of its net assets, including any investment borrowings, in mid-cap stocks under normal market conditions. These mid-cap companies are defined by the fund manager as those with market capitalizations that fall within the range set by a widely recognized mid-cap index at the time of investment. This strategy positions the fund to capture the growth potential of companies that are well-established but still have room for expansion.
The ETF’s focus on mid-cap companies offers a unique blend of growth and stability, as these companies typically exhibit lower risk than small-cap stocks but provide greater growth opportunities compared to large-cap firms. The fund’s active management approach allows it to dynamically adjust its holdings based on market conditions and the manager’s assessment of individual company performance. By doing so, the First Trust Active Factor Mid Cap ETF seeks to enhance returns while managing risk, making it a compelling choice for investors looking to diversify their portfolios with mid-cap equities.
First Trust, the manager of this ETF, is known for its expertise in factor-based investing and active management. The firm’s approach combines quantitative analysis with fundamental research to identify mid-cap companies that exhibit strong growth potential and favorable risk characteristics. The Active Factor Mid Cap ETF leverages First Trust’s deep market knowledge and experience, aiming to deliver consistent performance through various market cycles. The fund’s active strategy differentiates it from traditional index-based mid-cap ETFs, offering the potential for outperformance by selecting stocks based on a combination of factors.
Investors should consider the fund’s objectives, risks, and expenses before investing. The ETF’s focus on mid-cap stocks means it may experience higher volatility compared to large-cap funds, particularly during periods of market uncertainty. However, this also presents the opportunity for higher returns as mid-cap companies grow and expand. The First Trust Active Factor Mid Cap ETF is well-suited for investors with a long-term investment horizon who are seeking to capitalize on the growth potential of mid-sized companies in the U.S. equity market.
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