ILDR Profile
The First Trust Innovation Leaders ETF is an actively managed exchange-traded fund that aims to provide investors with exposure to companies poised to benefit from scientific and technological advancements. Under normal market conditions, the fund allocates at least 80% of its net assets, plus any borrowings for investment purposes, to common stock and depository receipts issued by both U.S. and non-U.S. companies. These companies are selected based on their potential to leverage or drive significant innovation in their respective fields.
The ETF primarily focuses on investments within the information technology sector, which is known for its rapid growth and transformative potential. Due to its concentration in this sector, the fund may have a significant exposure to various industries within information technology, such as software, hardware, semiconductor manufacturing, and technology services. This concentrated approach allows the fund to capitalize on emerging trends and breakthrough technologies that are likely to drive future growth.
As a non-diversified fund, the First Trust Innovation Leaders ETF may allocate a significant portion of its assets to a smaller number of holdings, reflecting its concentrated investment strategy. This approach aims to enhance returns by focusing on high-growth companies with substantial innovation potential. However, it also entails higher risk due to the potential impact of individual stock performance on the overall fund.
Overall, the First Trust Innovation Leaders ETF seeks to capture growth opportunities driven by technological innovation across global markets. By concentrating its investments in the technology sector and targeting companies at the forefront of scientific advancements, the fund aims to deliver strong performance potential for investors willing to embrace the risks associated with its focused strategy.
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