Top Ranking First Trust RBA American Industrial Renaissance® ETF Reaches New Milestones in Growth and Performance over its 10+ Year History

Rhea-AI Summary

First Trust announced that its First Trust RBA American Industrial Renaissance® ETF (NASDAQ: AIRR) has surpassed $3 billion in net assets as of January 6, 2025. The ETF, which tracks small and mid-cap U.S. companies in industrial and community banking sectors, has demonstrated strong performance with a 33.43% one-year return as of December 31, 2024, outperforming the S&P 500® Industrials Index's 17.47%.

Since its March 2014 inception, AIRR has achieved an average annual return of 13.56%, surpassing its benchmark index. The fund has earned a 5-Star Overall Morningstar Rating™ and ranks #1 in Morningstar's Industrials category across multiple timeframes. The fund's success aligns with Richard Bernstein Advisors' thesis that U.S. industrial sector may continue gaining global market share due to deglobalization trends.

Positive

• Reached over $3 billion in net assets
• 33.43% one-year total return, significantly outperforming benchmark
• 13.56% average annual return since inception, beating S&P 500® Industrials Index
• #1 performing fund in Morningstar's Industrials category
• 5-Star Overall Morningstar Rating

Negative

• Higher expense ratio of 0.70% compared to typical index funds

Insights

ETF & Investment Strategy Analyst

The remarkable success of the AIRR ETF, now surpassing $3 billion in assets, represents a significant validation of the American Industrial Renaissance investment thesis. The fund's exceptional 33.43% one-year return and consistent outperformance across all time periods merit careful analysis.

Several structural factors support this success:

• The fund's unique positioning at the intersection of deglobalization and domestic manufacturing revival captures two powerful macro trends
• Focus on small/mid-cap companies provides exposure to more agile players better positioned to benefit from reshoring and supply chain reorganization
• The innovative inclusion of regional banks alongside industrials creates a comprehensive ecosystem play - these banks typically have deep relationships with local manufacturers and better understand their capital needs
• The fund's 5-star Morningstar rating and top category ranking demonstrate strong risk-adjusted returns, not just absolute performance

The outperformance is particularly noteworthy given that it has been achieved without exposure to large-cap tech stocks that have driven much of the broader market's returns. This suggests the emergence of a new market leadership dynamic where domestic industrial capacity and supply chain resilience are being revalued by investors.

The fund's success also reflects deeper structural changes in U.S. manufacturing, including:

• Increased automation and advanced manufacturing adoption
• Growing emphasis on domestic supply chain security
• Rising labor costs in traditional offshore manufacturing hubs
• Geopolitical pressures favoring domestic production

The 21.70% five-year annualized return, significantly outpacing both industrial and broader market indices, suggests this is not a temporary trend but rather a fundamental repositioning of U.S. industrial competitiveness.

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Advisors L.P. (“First Trust”), a leading ETF provider and asset manager, announced that the First Trust RBA American Industrial Renaissance^® ETF (NASDAQ: AIRR) has reached over $3 billion in net assets as of 1/6/2025 and continues to be a top performing fund. AIRR seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the Richard Bernstein Advisors American Industrial Renaissance^® Index (the “index”). The index is designed to measure the performance of small and mid-cap U.S. companies in the industrial and community banking sectors. These companies are directly involved in manufacturing, related infrastructure, and banking, including regional banks from U.S. states traditionally known as manufacturing hubs.

Richard Bernstein Advisors (“RBA”) believes the U.S. industrial sector may continue gaining global market share over the next decade as a result of deglobalization, potentially making the American Industrial Renaissance^® an investment theme for many years to come.

“The American Industrial Renaissance has proven to be an exceptionally successful investment theme, as evidenced AIRR surpassing $3 billion in net assets,” said Richard Bernstein, CEO, CIO at Richard Bernstein Advisors. “Despite this achievement, the critical need for the U.S. to invest in manufacturing—both to safeguard economic independence and bolster national security—remains widely underappreciated. This underscores the American Industrial Renaissance's potential as a compelling long-term investment opportunity.”

“In our view, one of the most intriguing aspects of this theme is how little attention it has received from investors,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. “Not only in light of its strong performance over the past decade, but more importantly, how well we believe it’s positioned for the next several years.”

AIRR Performance Highlights as of 12/31/2024:

• 1-year average annual total return of 33.43%, based on net asset value (NAV), versus 17.47% for the S&P 500^® Industrials Index.
• Since its inception in March 2014, AIRR has achieved an average annual total return of 13.56%, based on NAV, outperforming the S&P 500^® Industrials Index which had a total return of 10.80% over the same period.
• Largest and fastest-growing ETF in Morningstar’s Industrials category, based on total net assets.¹
• 5-Star Overall Morningstar Rating^TM, among 44 funds in the Industrials category. This fund was rated 5 stars/44 funds (3 years), 5 stars/42 funds (5 years), 5 stars/32 funds (10 years) based on risk adjusted returns.
• #1 performing fund in Morningstar’s Industrials category, ranking #1/41 funds (1 year), #1/32 funds (5 years), #1/25 funds (10 years) and #1/25 funds (since fund inception).
• AIRR has outperformed the S&P 500^® Index in the 1-year, 5-year, and 10-year time periods based on NAV despite not holding information technology or large cap growth companies.

Performance (%)	1 Year	5 Year	10 Year	Since Fund Inception
Net Asset Value*	33.43	21.70	15.70	13.56
Market Price*	33.24	21.70	15.69	13.56
S&P 500® Industrials Index**	17.47	12.03	10.75	10.80
Russell 2500® Index**	12.00	8.77	8.85	8.50
S&P 500® Index**	25.02	14.53	13.10	13.19

Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost. You can obtain performance information which is current through the most recent month-end by visiting www.ftportfolios.com.

Inception Date: 3/10/2014. Total Expense Ratio: 0.70%.

*NAV returns are based on the fund’s net asset value which represents the fund’s net assets (assets less liabilities) divided by the fund’s outstanding shares. Market Price returns are determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. Returns are average annualized total returns.

**Performance information for each listed index is for illustrative purposes only and does not represent actual fund performance. Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

¹Source: Morningstar, based on net assets under management from AIRR inception date of 3/10/2014 through 12/31/2024.

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.

About First Trust

First Trust is a federally registered investment advisor and serves as the fund’s investment advisor. First Trust and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $256 billion as of December 31, 2024, through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit https://www.ftportfolios.com.

About Richard Bernstein Advisors

Richard Bernstein Advisors LLC is a global macro multi-asset investment manager with a broad range of products across global equity and fixed income markets. Founded in 2009, RBA manages approximately $16 billion in client assets today, including several prominent pension plans, corporations and foundations, as well as financial advisors and high net worth individuals. RBA acts as sub-advisor for the Eaton Vance Richard Bernstein Equity Strategy Fund and the Eaton Vance Richard Bernstein All-Asset Strategy Fund and offers income and theme-oriented unit trusts and ETFs through First Trust. RBA's investment insights as well as further information about the firm and products can be found at www.rbadvisors.com.

You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit www.ftportfolios.com to obtain a prospectus or summary prospectus which contains this and other information about a fund. The prospectus or summary prospectus should be read carefully before investing.

Risk Considerations

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Industrials and producer durables companies are subject to certain risks, including the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. They may also be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, and government regulations.

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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

Richard Bernstein Advisors and Richard Bernstein Advisors American Industrial Renaissance^® Index ("Index") are trademarks and trade names of Richard Bernstein Advisors ("RBA"). The Fund is not sponsored, endorsed, sold or promoted by RBA and RBA makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of trading in the Fund. RBA's only relationship to First Trust is the licensing of certain trademarks and trade names of RBA and of the Index, which is determined and composed by RBA without regard to First Trust or the Fund. RBA has no obligation to take the needs of First Trust or the owners of the Fund into consideration in determining or composing the Index. RBA is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Fund to be listed or in the determination or calculation of the equation by which the Fund is to be converted into cash. RBA has no obligation or liability in connection with the administration, marketing or trading of the Fund.

^{^}The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. ^©2025 Morningstar, Inc. All Rights Reserved. The Morningstar Rating™ information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

S&P 500^® Industrials Index - The Index is an unmanaged index which includes the stocks in the industrials sector of the S&P 500 Index.

Russell 2500^® Index - The Index is an unmanaged market-cap weighted index that includes the smallest 2,500 companies from the Russell 3000 Index.

S&P 500^® Index - The Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250124768701/en/

Ryan Issakainen

First Trust

(630) 765-8689

RIssakainen@FTAdvisors.com

Source: First Trust Advisors L.P.

FAQ

What is the current performance of AIRR ETF in 2024?

AIRR ETF achieved a 33.43% one-year total return as of December 31, 2024, outperforming the S&P 500® Industrials Index which returned 17.47%.

How much assets under management does AIRR ETF have in 2025?

AIRR ETF has reached over $3 billion in net assets as of January 6, 2025.

What is AIRR ETF's average annual return since inception?

Since its inception in March 2014, AIRR has achieved an average annual total return of 13.56% based on NAV.

What is the expense ratio for AIRR ETF?

AIRR ETF has a total expense ratio of 0.70%.

How does AIRR ETF rank in Morningstar's Industrials category?

AIRR is the #1 performing fund in Morningstar's Industrials category, ranking first across 1-year, 5-year, 10-year, and since inception periods.