First Trust NASDAQ Lux Digital Economy ETF (EKG)

Overview

The fund is a specialized investment vehicle that focuses on the nexus of healthcare and technology sectors. By channeling at least 80% of its net assets, alongside any funds borrowed for investment purposes, into the common stocks and depositary receipts included in its benchmark index, the fund aims to replicate the index's performance. This index, curated based on the expertise of Lux Capital, targets companies that play a pivotal role at the intersection of these two critical industries. By offering and analyzing products and services that straddle healthcare and technology, these companies represent the fund's investment universe. Emphasizing a non-diversified investment approach, the fund concentrates its resources on a select group of companies that it predicts will drive the next wave of innovation and growth in the healthcare technology domain.

Products and Services

• Common Stocks and Depositary Receipts

  The core assets of this fund are common stocks and depositary receipts that represent a share in the ownership of companies operating at the forefront of healthcare and technology. These assets are selected based on their inclusion in the fund's index, which tracks the performance of companies identified by Lux Capital as leaders in integrating technology with healthcare solutions.

• Index-Based Investment Strategy

  In adhering to an index-based investment strategy, the fund seeks to mimic the performance of a benchmark index curated to reflect advancements and growth within the healthcare technology sector. This approach involves analyzing and selecting companies that not only excel in their respective fields but also contribute to the evolution of healthcare through technological innovation. Lux Capital's classification and analysis play a critical role in shaping the composition of the index and, by extension, the fund's investment portfolio.

• Non-Diversified Fund Structure

  Despite the usual preference for diversification within investment funds to mitigate risks, this fund adopts a non-diversified stance. This bold approach enables the fund to make substantial investments in a compact selection of stocks and securities that it believes have high growth potential. The non-diversified structure is predicated on the conviction that focused investments in the healthcare and technology sectors, as specified by the index, can yield significant returns for investors willing to embrace the associated risks.