The First Trust Global Tactical Commodity ETF (FTGC) is offered by First Trust Advisors L.P., the Fund's investment advisor. This actively managed exchange-traded fund seeks to achieve attractive risk-adjusted returns by investing in commodity futures contracts, exchange-traded commodity-linked instruments, and commodity-linked total return swaps through a wholly-owned subsidiary organized under the laws of the Cayman Islands. The Fund aims to gain exposure to these investments exclusively through the Subsidiary, which has the same investment objective but can invest without limitations in Commodities Instruments. The Subsidiary employs a disciplined, systematic investment process that manages volatility by rebalancing the underlying Commodities Instruments, aiming to maintain notional exposure to commodities close to 100% of its net asset value. Additionally, the Fund may invest in U.S. government securities, short-term repurchase agreements, money market instruments, ETFs, and other investment companies, providing investors with a diversified approach to commodity markets within current federal income tax laws applicable to investment companies.
The First Trust Global Tactical Commodity Strategy Fund (FTGC) focuses on achieving attractive risk-adjusted returns through investments in commodity futures contracts, exchange-traded commodity-linked instruments, and commodity-linked total return swaps. While the fund doesn't directly invest in these instruments, it gains exposure to them through a wholly-owned subsidiary based in the Cayman Islands. The fund aims to maintain notional exposure to commodities close to 100% of its net asset value and utilizes a dynamic weighting process to manage volatility. Although dividends are not the primary focus of this ETF, investors should be aware that its dividend distributions, if any, may be influenced by the performance and policies of the underlying commodities market and related instruments.
Tracking the First Trust Global Tactical Commodity Strategy ETF involves an active management approach aimed at achieving attractive risk-adjusted returns through investments in commodity futures contracts, exchange-traded commodity-linked instruments, and commodity-linked total return swaps, all carried out via a wholly-owned subsidiary based in the Cayman Islands. The fund primarily gains exposure to these investments through its subsidiary, which is advised by First Trust Advisors L.P., the fund's investment advisor. The subsidiary focuses on managing volatility in its investments, rebalancing its underlying commodities instruments, and maintaining notional exposure to commodities close to 100% of the net asset value, with potential adjustments for risk mitigation. The portfolio managers may also reduce notional exposure under certain market conditions to mitigate risk. The fund's holdings in commodities instruments may consist of futures contracts, commodity-linked ETFs, and pooled investment vehicles, with a net long exposure approach. Additionally, the fund holds a portion of its assets in U.S. government and agency securities, short-term repurchase agreements, money market instruments, ETFs, and other investment companies to collateralize its subsidiary's commodities exposure. The fund may also engage in repurchase agreements and swap agreements to achieve its investment objectives. The list of commodities instruments and markets considered for investment may change over time.
The correlation aspect of the First Trust Global Tactical Commodity ETF (FTGC) is crucial for investors seeking exposure to commodity markets while managing risk. Since FTGC invests indirectly in commodity futures contracts, exchange-traded commodity linked instruments, and commodity-linked total return swaps through a subsidiary, its correlation with commodity prices and market conditions is essential to assess. FTGC's dynamic weighting process aims to stabilize risk levels, making it an effective tool for risk mitigation and exposure to commodities. For detailed insights into FTGC's correlations with commodities and market trends, utilize ETF Insider's web app, providing comprehensive data visualization and overlap analysis for all US ETFs.
The FTGC Sector, represented by the actively managed First Trust Global Tactical Commodity Strategy ETF (FTGC), focuses on achieving attractive risk-adjusted returns through investments in commodity futures contracts, exchange-traded commodity-linked instruments, and commodity-linked total return swaps. This ETF primarily gains exposure to commodities by investing in a wholly-owned subsidiary organized under the laws of the Cayman Islands. Managed by First Trust Advisors L.P., the Subsidiary aims to provide exposure to commodity markets within the limits of current federal income tax laws. While the fund typically maintains notional exposure to commodities close to 100% of its net asset value, it may adjust this exposure downward at times for risk mitigation, using a dynamic weighting process designed to stabilize risk levels. In addition to futures contracts, the Subsidiary may invest in commodity-linked instruments, including ETFs and pooled investment vehicles, while maintaining a net long exposure to commodities. The remaining assets of FTGC are primarily invested in U.S. government securities, short-term repurchase agreements, money market instruments, ETFs, and other investment companies, allowing for diversified exposure to the commodities sector.
The exposure characteristic of the First Trust Global Tactical Commodity Strategy Fund (FTGC) reflects its active management approach in seeking attractive risk-adjusted returns by investing in commodity futures contracts, exchange-traded commodity-linked instruments, and commodity-linked total return swaps through a wholly-owned subsidiary. FTGC primarily aims to gain exposure to commodity markets while managing volatility. The Subsidiary, advised by First Trust Advisors L.P., invests in various Commodities Instruments, including futures contracts, ETFs providing commodity exposure, and other related instruments. The fund typically maintains notional exposure to commodities close to 100% of its net asset value, adjusting it as needed for risk mitigation, based on the discretion of portfolio managers.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
By organizing and structuring that data, investors can easily navigate within their overlapping layers.
This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
4 min readFEZ VS dbeu are specialized investment funds that focus on a diverse range of sectors in the financial market. these exchange-traded funds offer investors exposure to various industries and companies, presenting potential growth opportunities and risks. it's essential to understand the underlying assets and strategies of these etfs before considering an investment.
3 min readVBK VS mtum are specialized investment funds that focus on a diverse range of sectors in the financial market. these exchange-traded funds offer investors exposure to various industries and companies, presenting potential growth opportunities and risks. it's essential to understand the underlying assets and strategies of these etfs before considering an investment.
4 min readThe IWD ETF, or the iShares Russell 1000 Value ETF, is a popular exchange-traded fund that aims to track the performance of value-oriented companies in the U.S. equity market. This ETF provides investors with exposure to a diverse range of large and mid-cap value stocks, offering an opportunity to potentially benefit from companies that are considered undervalued compared to their fundamental attributes. Explore how the IWD ETF can be a valuable addition to an investor's portfolio, seeking growth through a disciplined value investing approach.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
