First Trust Long/Short Equity ETF (1FUG)
XBER 
ARCA Primary XBER Summary
1FUG Chart
FTLS: Reaffirming My Buy Recommendation
First Trust Long/Short Equity ETF remains a Buy for conservative and balanced investors seeking downside protection amid frothy market valuations. FTLS offers competitive returns with significantly lower volatility and superior downside protection compared to the S&P 500, making it ideal for risk-averse portfolios. While FTLS lags in up markets and has a high expense ratio (1.38%), its low beta and consistent risk-adjusted returns justify its inclusion for diversification.
FTLS: Active Long-Short ETF With Good Downside Protection
First Trust Long/Short Equity ETF (FTLS) is an active equity ETF whose long and short exposures may vary with market conditions. FTLS currently has a 66% net long exposure with a focus on consumer discretionary and technology, and solid fundamental metrics. Compared to competitors, FTLS shows compelling downside protection, although investors prioritizing risk-adjusted return may prefer CLS.
FTLS: This Long-Short ETF Is Still A Buy
FTLS is a long/short ETF with a strong performance history, offering low volatility and shallow drawdowns, making it a robust alternative to SPY. The fund's active management and sectoral positioning allow it to capture upside while minimizing downside, outperforming in down markets. With the current high P/E ratios, switching from SPY to FTLS can help manage risk and limit potential losses during market corrections.
First Trust Long/Short Equity ETF (1FUG) FAQ
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First Trust Long/Short Equity ETF Profile
| XBER Exchange | US Country |
Overview
The described entity is a fund that predominantly invests in U.S. exchange-listed equity securities and U.S. exchange-traded funds (ETFs) that mirror the performance of U.S. equities. Emphasizing a strategy that involves both long and short positions in these securities and ETFs, the fund aims to adhere to its investment objective under normal market conditions. By allocating at least 80% of its net assets (inclusive of investment borrowings) towards U.S. listed equities and/or ETFs, this fund seeks to maintain a significant exposure to the U.S. stock market. Additionally, it permits investing up to 20% of its net assets (including borrowing for investment purposes) in U.S. exchange-listed equity index futures contracts, adding a layer of flexibility and potential for hedging to its investment approach.
Products and Services
- U.S. Exchange-Listed Equity Securities
This refers to shares of companies that are traded on U.S. stock exchanges. The fund invests primarily in these securities to ensure a firm exposure to the U.S. equity market. By maintaining at least 80% of its net assets in such assets, it aligns its portfolio with the dynamic landscape of U.S. equities, aiming at long-term growth.
- U.S. Exchange-Traded Funds (ETFs)
The fund incorporates U.S. exchange-traded funds into its investment strategy, which track the performance of U.S. listed equity securities. These ETFs provide diversified exposure to the U.S. stock market, allowing the fund to partake in the broader market movements while managing risk.
- Long and Short Positions in Portfolio
Utilizing a strategy that encompasses both long and short positions enables the fund to capitalize on the upward and downward market movements. By going long, the fund invests in stocks it expects to rise in value, and by short selling, it anticipates earning from stocks projected to decline. This strategy aims to generate returns under various market conditions, fostering a robust investment approach.
- U.S. Exchange-Listed Equity Index Futures Contracts
The fund allocates up to 20% of its net assets to engage in U.S. exchange-listed equity index futures contracts. These derivatives are agreements to buy or sell a specified equity index at a future date, allowing the fund to hedge against market volatility and potentially profit from futures market movements.
