First Trust ETF selects international stocks with strong financials

Morningstar Canada 17 May, 2018 | 6:00PM

Actively managed First Trust International Capital Strength (symbol: FINT), which invests in developed markets outside North America, opened for trading today on the Toronto Stock Exchange.

Sponsored by FT Portfolios Canada Co., which operates as First Trust Canada, the exchange-traded fund's stock-selection strategy involves multiple quantitative criteria, along with judgment calls on the part of the portfolio managers.

Among the key metrics are cash on hand, return on equity and long-term debt to the market value of equity. The managers also consider valuations and future growth prospects. They favour stocks that, in their opinion, are likely to exceed market expectations of future cash flows.

U.S.-based First Trust Advisors LP, an affiliate of Toronto-based First Trust Canada, is responsible for managing the portfolio. The management fee for the ETF's single class of units is 0.7%, which covers most expenses.

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