FTIF Profile
The First Trust Bloomberg Inflation Sensitive Equity ETF primarily invests at least 80% of its net assets, including any investment borrowings, in common stocks that are constituents of its underlying index. The fund employs an indexing strategy to mirror, before fees and expenses, the total return performance of this index, which encompasses both capital gains and dividends from the constituent stocks. The ETF's investment objective is to offer investors a means of gaining exposure to equities that are sensitive to inflationary pressures, based on a rules-based index approach.
The underlying index utilized by the fund is designed to capture the performance of stocks that are expected to benefit from or are less vulnerable to inflation. This rules-based index systematically selects companies whose business models, revenue streams, or operational characteristics are likely to be positively impacted by rising inflation or who have mechanisms to mitigate its effects. The fund's approach aims to provide a hedge against inflation by investing in sectors or industries that historically demonstrate resilience during inflationary periods.
As a non-diversified fund, the ETF focuses its investments on a specific set of stocks included in the index, rather than spreading assets across a broader range of securities. This concentrated investment strategy reflects the fund's commitment to providing targeted exposure to inflation-sensitive equities, aligning with the broader objective of offering investors a strategic way to manage inflation risk within their equity portfolios.
Managed by First Trust, the ETF benefits from the firm's extensive expertise in financial markets and indexing strategies. First Trust's robust analytical framework and research capabilities underpin the fund's objective to deliver performance consistent with the underlying index. By leveraging its investment approach, First Trust aims to offer investors a specialized equity product designed to navigate inflationary environments effectively while capturing potential opportunities for growth.
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