Should First Trust Growth Strength ETF (FTGS) Be on Your Investing Radar?

The First Trust Growth Strength ETF (FTGS), launched in October 2022, is a passively managed fund offering exposure to the US Large Cap Growth equity segment, currently holding over $1.29 billion in assets. With an annual operating expense of 0.6%, FTGS is positioned as a more expensive option compared to peers like Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), which boast significantly lower expense ratios and much larger assets under management. The ETF, which allocates 29.4% to Information Technology and holds a Zacks ETF Rank of 3 (Hold), has delivered approximately 16% returns year-to-date and over the last year, providing diversified exposure across 51 holdings.

Analysis

The First Trust Growth Strength ETF (FTGS), launched in October 2022, is a passively managed fund designed to provide broad exposure to the US Large Cap Growth equity market, currently managing over $1.29 billion in assets. This positions it as an average-sized ETF within its segment, aiming to match the performance of THE GROWTH STRENGTH INDEX.

FTGS has delivered strong performance, with approximately 16.01% year-to-date and 16.04% over the last year (as of 10/27/2025). However, its annual operating expense ratio of 0.6% is notably higher than comparable large-cap growth ETFs, such as Vanguard Growth ETF (VUG) at 0.04% and Invesco QQQ (QQQ) at 0.2%.

The ETF exhibits a substantial allocation to the Information Technology sector, comprising 29.4% of its portfolio, with Financials and Consumer Discretionary rounding out the top three. Its risk profile includes a beta of 1.12 and a standard deviation of 17.42% over the trailing three-year period, reflecting the higher volatility typically associated with growth stocks.

Given its Zacks ETF Rank of 3 (Hold), FTGS is considered a suitable option for investors specifically targeting the Large Cap Growth style box. However, its higher expense ratio and moderate asset base compared to established alternatives like VUG and QQQ, which boast significantly larger AUM, warrant careful consideration.

Key Decisions for Investors

• Investors should carefully weigh the First Trust Growth Strength ETF's (FTGS) higher annual operating expense of 0.6% against lower-cost, larger alternatives like VUG (0.04%) and QQQ (0.2%) when seeking large-cap growth exposure.
• Evaluate FTGS's significant 29.4% allocation to Information Technology and its associated higher volatility (beta 1.12) inherent in growth stocks, aligning it with their risk tolerance and sector views.
• Consider the Zacks ETF Rank of 3 (Hold) as an indicator that FTGS is a viable but not necessarily superior option within the Large Cap Growth segment, prompting further due diligence on its specific index methodology and holdings.