Best First Trust ETFs to Invest in

If you're new to investing, First Trust ETFs are a great place to start. First Trust offers a wide range of ETFs that track various market indices, sectors, and themes.

For beginners, it's essential to start with low-cost ETFs. The First Trust Low Beta ETF (FTLBX) has an expense ratio of 0.20%, making it an affordable option.

Investing in the First Trust Morningstar Dividend Leaders Index Fund (FDL) can provide a steady income stream. This ETF tracks the Morningstar Dividend Leaders Index, which consists of 100 high-dividend-yielding stocks.

The First Trust Nasdaq Technology Dividend Index Fund (TDIV) is another option for income-seeking investors. It tracks the Nasdaq Technology Dividend Index, which includes dividend-paying stocks in the technology sector.

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The First Trust ETFs that have been performing well are worth taking a look at. The First Trust US IPO Index UCITS ETF Acc has returned a significant 15.56% in performance.

If you're looking for a high-performing ETF, consider the First Trust US IPO Index UCITS ETF Acc. Its strong returns make it a contender for any investment portfolio.

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Here are some of the top-performing First Trust ETFs, sorted by their returns:

The First Trust Cloud Computing UCITS ETF Acc and First Trust Nasdaq Cybersecurity UCITS ETF Acc are also notable performers, with returns of 13.15% and 12.58% respectively.

As a beginner, it's essential to start with ETFs that have a low minimum investment requirement, such as Vanguard's VOO, which has a minimum investment of just $100.

VOO tracks the S&P 500 index, which means it provides broad exposure to the US stock market.

The expense ratio for VOO is 0.03%, making it a very cost-effective option for beginners.

Another option is Schwab's SCHB, which has a similar low minimum investment requirement of $100.

SCHB also tracks the S&P 500 index, making it a great choice for those who want to invest in the US stock market.

The expense ratio for SCHB is also very low, at 0.02%.

BlackRock's BND is a great option for those who want to invest in bonds, with a minimum investment requirement of just $100.

BND tracks the Bloomberg Barclays US Aggregate Float Adjusted Index, which includes a wide range of US investment-grade bonds.

The expense ratio for BND is 0.04%.

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The First Trust Technology AlphaDEX Fund (FXL) is a standout ETF that tracks the StrataQuant Technology Index, providing exposure to tech companies with favorable fundamental metrics.

This ETF uses a unique AlphaDEX methodology to select its holdings, setting it apart from traditional market-cap-weighted strategies used by other tech-focused ETFs like XLK and VGT.

FXL's quantitative selection process offers potential for outperformance based on specific factors, giving investors a different approach to investing in technology.

The Technology Select Sector SPDR Fund (XLK) and the Vanguard Information Technology ETF (VGT) follow traditional market-cap-weighted strategies, which may not offer the same level of outperformance as FXL's AlphaDEX methodology.

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If you're looking for a dividend growth-focused ETF, consider the First Trust Rising Dividend Achievers ETF (RDVY). It tracks the NASDAQ US Rising Dividend Achievers Index, which includes companies with a history of increasing dividends.

RDVY stands out from other dividend growth-focused ETFs like the Vanguard Dividend Appreciation ETF (VIG) and the iShares Select Dividend ETF (DVY) by emphasizing companies with rising dividends over time. This approach may appeal to investors seeking a combination of income and potential capital appreciation.

The First Trust Rising Dividend Achievers ETF (RDVY) may be a good fit for income-oriented investors seeking a dividend growth strategy.

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ETFs, or exchange-traded funds, are a type of investment that tracks a specific index, sector, or asset class. They offer diversification, flexibility, and cost-effectiveness.

One of the key benefits of ETFs is their ability to be traded throughout the day, allowing you to quickly respond to market changes. This is in contrast to mutual funds, which are traded at the end of the day.

ETFs typically have lower fees compared to actively managed funds, with some First Trust ETFs offering expense ratios as low as 0.05%. This can lead to significant long-term savings for investors.

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Investing in ETFs can offer a diverse range of investment options, spanning various asset classes, sectors, and investment strategies.

This diversity allows investors to tailor their portfolios according to their specific investment goals and risk preferences.

First Trust offers a wide array of ETFs, which can be a great advantage for those looking to mix and match different investment types.

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Many First Trust ETFs utilize proprietary index methodologies that go beyond traditional market-cap weighting, aiming to identify companies with desirable characteristics.

These methodologies can help investors find companies with strong fundamentals, attractive valuation, or specific investment themes.

First Trust ETFs are generally transparent, providing easy access to information about underlying holdings and expenses.

This transparency makes it easier for investors to evaluate and compare options.

First Trust has a track record of offering ETFs that have delivered competitive performance compared to their respective benchmarks.

Before investing in ETFs, it's essential to determine if they're suitable for you. This depends on your investment objectives, risk tolerance, and individual preferences.

To evaluate First Trust ETFs or any ETFs in general, consider the investment strategy and underlying holdings. Ensure it aligns with your investment goals and risk tolerance.

The expense ratio of an ETF directly affects your investment returns, so evaluate it carefully. Compare the expense ratios of similar ETFs to find a cost-efficient option.

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Higher liquidity and trading volume in an ETF can result in tighter bid-ask spreads, reducing transaction costs. This is a significant consideration when making investment decisions.

A diversified ETF can help mitigate risks associated with individual stocks or sectors. This is especially important for investors with a conservative risk tolerance.

The First Trust ETFs we'll be looking at have varying fund sizes, which can give us an idea of their popularity and liquidity. The largest ETF on our list is the First Trust Nasdaq Cybersecurity UCITS ETF Acc, with a fund size of 955 million euros.

The ongoing charges (TER) for these ETFs range from 0.55% to 0.90% per annum. The First Trust US Equity Income UCITS ETF Acc has the lowest ongoing charges at 0.55% p.a.

Here's a summary of the ETFs' returns over the past year:

The returns vary widely, but some ETFs have shown impressive growth over the past year. The First Trust US IPO Index UCITS ETF Acc has returned 42.84%, making it a standout performer.

First Trust ETFs offer a diverse range of investment options, spanning various asset classes, sectors, and investment strategies.

This diversity allows investors to tailor their portfolios according to their specific investment goals and risk preferences.

Many First Trust ETFs utilize proprietary index methodologies that go beyond traditional market-cap weighting.

These methodologies aim to identify companies with desirable characteristics, such as strong fundamentals, attractive valuation, or specific investment themes.

First Trust ETFs provide transparency in terms of holdings and expenses, making it easier to evaluate and compare options.

Investors can easily access information about the underlying holdings and expenses of First Trust ETFs.

Historical performance has shown that First Trust ETFs have delivered competitive performance compared to their respective benchmarks.

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The First Trust SMID Cap Rising Dividend Achievers ETF has an inception date of November 1, 2017.

This fund is part of the First Trust Advisors L.P. family, a well-established fund family in the industry.

The fund's legal name is First Trust SMID Cap Rising Dividend Achievers ETF, and it has 34,300,002 shares outstanding.

The fund details are an essential part of understanding an investment. The First Trust SMID Cap Rising Dividend Achievers ETF has its legal name as specified.

The fund family name is First Trust Advisors L.P. This is important to know when researching the investment.

The inception date for this ETF is November 1, 2017. This gives you an idea of how long it's been around.

Let's take a look at the key details:

The Technology AlphaDEX Fund FXL is an ETF that focuses on the technology sector, seeking to track the performance of the StrataQuant Technology Index.

FXL aims to provide investors with exposure to technology companies that exhibit strong growth potential and favorable valuation metrics. This unique approach to stock selection and weighting is based on the AlphaDEX methodology, which combines fundamental and quantitative analysis.

This active management style may appeal to investors looking for potential alpha generation within the technology sector. By utilizing the AlphaDEX methodology, FXL aims to outperform traditional market-cap-weighted technology ETFs.

FXL's quantitative selection process offers potential for outperformance based on specific factors, setting it apart from other technology-focused ETFs like the Technology Select Sector SPDR Fund (XLK) and the Vanguard Information Technology ETF (VGT).

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In terms of rankings, First Trust US IPO Index UCITS ETF Acc takes the top spot with a 1-year return of 42.84%. This is significantly higher than the category average.

The 3-year return for First Trust US IPO Index UCITS ETF Acc is also noteworthy, with a return of 15.56%. This is a testament to the fund's consistent performance over time.

Here are some key rankings and returns to consider:

If you're looking for top-performing ETFs, it's worth checking out the First Trust US IPO Index UCITS ETF Acc, which has returned a whopping 15.56% in recent times.

The First Trust Cloud Computing UCITS ETF Acc is another strong contender, with a return of 13.15%.

First Trust Nasdaq Cybersecurity UCITS ETF Acc rounds out the top three, with a return of 12.58%.

Here are the top-performing ETFs from the list:

First Trust Germany AlphaDEX UCITS ETF Dist is worth considering, with a return of 9.51%.

First Trust US Momentum UCITS ETF Class A Accumulation has a return of 8.41%, making it a solid option for those looking for momentum.

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In the world of investments, it's essential to know how your fund is performing compared to its peers. Total return ranking is a key metric that helps you understand where your fund stands in its category.

The total return ranking is calculated over different periods, including YTD, 1 Yr, 3 Yr, 5 Yr, and 10 Yr. For instance, over the 1 Yr period, the SDVY Return was 15.6%.

To put this into perspective, the category return high for the 1 Yr period was 35.9%, while the category return low was 0.4%. This means that SDVY performed better than 31.53% of its peers over the same period.

Here's a snapshot of the total return ranking for SDVY over different periods: