Is First Trust International Developed Capital Strength ETF (FICS) a Strong ETF Right Now?

The First Trust International Developed Capital Strength ETF (FICS), a smart beta ETF launched in December 2020, has $204.51 million in assets and an expense ratio of 0.70%. FICS, which tracks the International Developed Capital Strength Index, is up 17.59% YTD and 16.14% over the past year, with top holdings including L'oreal S.a. (2.20%) and Gsk Plc, but the article suggests investors seeking to outperform the Foreign Large Growth ETF segment should consider alternatives like CGIE or CGXU.

Analysis

The First Trust International Developed Capital Strength ETF (FICS), a smart beta fund launched on December 15, 2020, provides exposure to well-capitalized companies in developed markets ex-US, selected for potential stability and long-term performance. It has accumulated $204.51 million in assets under management and operates with an annual expense ratio of 0.70%, which is comparable to its peers in the Foreign Large Growth ETF category, while offering a 1.95% trailing 12-month dividend yield. Year-to-date, FICS has returned approximately 17.59%, and it has gained 16.14% over the past year as of May 26, 2025, trading within a 52-week range of $33.47 to $39.78. The fund holds around 58 securities, diversifying company-specific risk, with top positions including L'oreal S.a. (2.20% of assets) and Gsk Plc; its top ten holdings account for approximately 20.81% of total assets. Despite these positive performance metrics and a relatively low beta of 0.79, the provided analysis explicitly states that FICS is not a suitable option for investors seeking to *outperform* the Foreign Large Growth ETF segment. Alternative ETFs, specifically Capital Group International Equity ETF (CGIE) with $635.09 million in AUM and Capital Group International Focus Equity ETF (CGXU) with $3.64 billion in AUM, are suggested as potentially more appropriate choices for achieving outperformance, both of which feature lower expense ratios of 0.54%.

Key Decisions for Investors

• Investors seeking diversified exposure to international developed large-cap growth stocks with a focus on 'capital strength' and stability, and who are comfortable with its 0.70% expense ratio and the fund's objective not being geared towards outperformance, might find FICS's recent positive returns (17.59% YTD) and 1.95% dividend yield adequate for their portfolio.
• For investors specifically targeting outperformance within the Foreign Large Growth ETF segment, it is advisable to evaluate the suggested alternatives, Capital Group International Equity ETF (CGIE) and Capital Group International Focus Equity ETF (CGXU), which are presented as better suited for this objective and benefit from lower expense ratios of 0.54%.