First Trust Launches First Trust New Constructs Core Earnings Leaders ETF
First Trust Advisors L.P. has launched the First Trust New Constructs Core Earnings Leaders ETF (NYSE Arca: FTCE). This new ETF tracks the Bloomberg New Constructs Core Earnings Leaders Index, which selects the top 100 companies from the Bloomberg 1000 Index with the highest earnings quality. The fund aims to provide exposure to companies with strong business fundamentals and high-quality, repeatable earnings.
FTCE uses New Constructs' methodology to determine Core Earnings by identifying and removing non-core and non-recurring gains and losses from company filings. This approach offers a clearer picture of a company's true earnings and overall quality. The ETF is designed to capitalize on the potential shift in investor focus towards stocks with high-quality earnings as the current bull market evolves.
First Trust Advisors L.P. ha lanciato il First Trust New Constructs Core Earnings Leaders ETF (NYSE Arca: FTCE). Questo nuovo ETF segue l'indice Bloomberg New Constructs Core Earnings Leaders, che seleziona le prime 100 aziende dall'indice Bloomberg 1000 con la migliore qualità degli utili. Il fondo mira a fornire esposizione a aziende con solidi fondamentali commerciali e utili di alta qualità e ripetibili.
FTCE utilizza la metodologia di New Constructs per determinare gli utili core identificando e rimuovendo guadagni e perdite non core e non ricorrenti dai documenti aziendali. Questo approccio offre un quadro più chiaro degli utili reali di una società e della sua qualità complessiva. L'ETF è progettato per capitalizzare il potenziale spostamento dell'attenzione degli investitori verso azioni con utili di alta qualità man mano che l'attuale mercato toro evolve.
First Trust Advisors L.P. ha lanzado el First Trust New Constructs Core Earnings Leaders ETF (NYSE Arca: FTCE). Este nuevo ETF sigue el índice Bloomberg New Constructs Core Earnings Leaders, que selecciona las 100 mejores empresas del índice Bloomberg 1000 con la mejor calidad de ganancias. El fondo tiene como objetivo proporcionar exposición a empresas con fundamentos comerciales sólidos y ganancias de alta calidad y repetibles.
FTCE utiliza la metodología de New Constructs para determinar las ganancias core, identificando y eliminando las ganancias y pérdidas no core y no recurrentes de los informes de las empresas. Este enfoque ofrece una imagen más clara de las verdaderas ganancias y la calidad general de una empresa. El ETF está diseñado para capitalizar el posible cambio en el enfoque de los inversores hacia acciones con ganancias de alta calidad a medida que evoluciona el actual mercado alcista.
퍼스트 트러스트 어드바이저스 L.P.가 퍼스트 트러스트 뉴 컨스트럭츠 코어 어닝스 리더스 ETF (NYSE Arca: FTCE)를 출시했습니다. 이 새로운 ETF는 블룸버그 뉴 컨스트럭츠 코어 어닝스 리더스 지수를 추적하며, 블룸버그 1000 지수에서 가장 높은 수익 품질을 가진 상위 100개 회사를 선택합니다. 이 펀드는 강력한 비즈니스 기본 요소와 고품질, 반복 가능한 수익을 가진 회사에 대한 노출을 제공하는 것을 목표로 합니다.
FTCE는 뉴 컨스트럭츠의 방법론을 사용하여 코어 수익을 결정하고, 회사 보고서에서 비핵심 및 비재귀적인 수익과 손실을 식별하여 제거합니다. 이러한 접근 방식은 회사의 실제 수익과 전반적인 품질을 보다 명확하게 보여줍니다. ETF는 현재의 강세장이 발전하는 동안 높은 품질의 수익을 가진 주식으로 투자자들의 관심이 이동할 잠재적 변화를 활용하도록 설계되었습니다.
First Trust Advisors L.P. a lancé le First Trust New Constructs Core Earnings Leaders ETF (NYSE Arca: FTCE). Cet nouvel ETF suit l'indice Bloomberg New Constructs Core Earnings Leaders, qui sélectionne les 100 meilleures entreprises de l'indice Bloomberg 1000 avec la plus haute qualité des bénéfices. Le fonds vise à fournir une exposition aux entreprises ayant de solides fondamentaux et des bénéfices de haute qualité et répétables.
FTCE utilise la méthodologie de New Constructs pour déterminer les bénéfices de base en identifiant et en éliminant les gains et pertes non essentiels et non récurrents des documents d'entreprise. Cette approche offre une vision plus claire des véritables bénéfices et de la qualité globale d'une entreprise. L'ETF est conçu pour capitaliser sur le potentiel changement de l'attention des investisseurs vers des actions avec des bénéfices de haute qualité alors que l'actuel marché haussier évolue.
First Trust Advisors L.P. hat den First Trust New Constructs Core Earnings Leaders ETF (NYSE Arca: FTCE) eingeführt. Dieser neue ETF folgt dem Bloomberg New Constructs Core Earnings Leaders Index, der die 100 besten Unternehmen aus dem Bloomberg 1000 Index mit der höchsten Gewinnqualität auswählt. Der Fonds zielt darauf ab, eine Exposition gegenüber Unternehmen mit soliden Geschäfts fundamentales und hochwertiger, wiederholbarer Gewinne zu bieten.
FTCE verwendet die Methode von New Constructs zur Bestimmung der Core Earnings, indem nicht-kern- und nicht-wiederkehrende Gewinne und Verluste aus Unternehmensberichten identifiziert und entfernt werden. Dieser Ansatz bietet ein klareres Bild der tatsächlichen Gewinne und der Gesamtqualität eines Unternehmens. Der ETF ist so konzipiert, dass er von dem potenziellen Wandel im Investorfokus hin zu Aktien mit hochwertigen Gewinnen profitiert, während sich der aktuelle Bullenmarkt entwickelt.
- Launch of a new ETF (FTCE) focused on companies with high earnings quality
- ETF tracks an index that selects top 100 companies based on Core Earnings analysis
- Potential to capitalize on investor focus shift towards high-quality earnings stocks
- None.
Insights
The launch of the First Trust New Constructs Core Earnings Leaders ETF (FTCE) represents a significant development in the ETF market. This new fund focuses on companies with high earnings quality, utilizing a unique approach to earnings analysis.
Key points:
- FTCE tracks the Bloomberg New Constructs Core Earnings Leaders Index, which selects the top 100 companies from the Bloomberg 1000 Index based on earnings quality.
- The fund's approach involves removing unusual gains and losses to reveal "Core" earnings, potentially offering a clearer picture of a company's profitability.
- With
$241 billion in assets under management, First Trust's entry into this niche could attract significant investor attention.
This ETF launch comes at a time when earnings growth has been muted compared to market valuations. It may appeal to investors seeking companies with sustainable, high-quality earnings in the current market environment. However, as with any new financial product, its performance and investor adoption remain to be seen.
The introduction of FTCE reflects a growing trend in the ETF market towards more sophisticated, factor-based investment strategies. This product differentiates itself by focusing on earnings quality, which could be particularly attractive in the current economic climate.
Market implications:
- Increased investor focus on earnings quality could potentially shift capital towards companies with more stable and transparent financial reporting.
- The ETF's methodology may put pressure on companies to improve their financial reporting practices and focus on core business performance.
- If successful, this ETF could inspire similar products, potentially leading to a new sub-category within smart beta ETFs.
While the concept is promising, the ETF's success will depend on its performance relative to broader market indices and its ability to attract assets in a crowded ETF marketplace. Investors and analysts will likely watch closely to see if the "Core Earnings" approach translates into superior returns over time.
An index-tracking ETF that provides exposure to companies with high earnings quality
"It's exciting to work with First Trust and see our differentiated approach to earnings analysis be made available for investors through an ETF. We've combined Bloomberg's own leading data and research with New Constructs' analysis to build the index with a new perspective on companies' true earnings,” said Allison Stone, Head of Multi-Asset Product, Bloomberg Index Services Limited.
A company’s reported earnings are often used as a metric to determine the overall operating profitability of their business. A deeper dive into the balance sheets and income statements, however, may reveal the true or, “Core,” earnings, which factor in the removal of unusual gains and losses, in turn painting a clearer picture of the overall quality of the company. New Constructs determines Core Earnings by reviewing company filings and identifying non-core and non-recurring gains and losses through their classification system using a combination of technology and expert analyst review. FTCE provides exposure to the companies that comprise the Bloomberg New Constructs Core Earnings Leaders Index (BCORE). BCORE uses a quantitative approach to select the top 100 companies in the Bloomberg 1000 Index (B1000) that have the highest earnings quality, as measured by Earnings Capture. Positive Earnings Capture illustrates stronger business fundamentals and may offer an opportunity for investment.
“Increasing valuations have been a key driver of returns for the current bull market, while earnings growth has been more muted. Consequently, for the bull market to continue, we believe investors may turn their focus more heavily towards stocks that have the potential to deliver high quality, repeatable earnings,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust.
For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241003998749/en/
Ryan Issakainen
First Trust
(630) 765-8689
RIssakainen@FTAdvisors.com
Source: First Trust Advisors L.P.
FAQ
What is the ticker symbol for the First Trust New Constructs Core Earnings Leaders ETF?
How does the FTCE ETF select companies for inclusion?
What is the main focus of the First Trust New Constructs Core Earnings Leaders ETF (FTCE)?
How does New Constructs determine Core Earnings for the FTCE ETF?
