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First Trust S&P 500 Diversified Free Cash Flow ETF

FCFY tracks an index composed of the largest U.S. companies that are perceived to have strong free cash flow yields in comparison to other firms within the same GICS sector.

FCFY is a relatively new and virtually unknown sector neutral ETF, selecting 100 S&P 500 Index stocks based on their free cash flow yield characteristics. The approach guarantees a certain level of diversification and differs from more popular free cash flow funds like COWZ and VFLO. Its composition could be more beneficial in a downturn. FCFY's value features are competitive with its peers. However, fund expenses are high at 0.60%, and the ETF has only $1.14 million in AUM, exposing shareholders to liquidation risk.

FCFY: Should You Buy This New Sector Neutral FCF Yield ETF?

First Trust Advisors has launched a new ETF that invests in large-cap companies with high free cash flow (FCF) yield. The First Trust S&P 500 Diversified Free Cash Flow ETF (NYSE Arca: FCFY) seeks to replicate the performance of the S&P 500 Sector-Neutral FCF Index.

With FCFY, First Trust Targets Companies With High Free Cash Flow Yield

WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that it has launched a new ETF, the First Trust S&P 500 Diversified Free Cash Flow ETF (NYSE Arca: FCFY) (the “fund”). The fund seeks investment results that correspond generally to the price and yield (before the fund's fee and expenses) of an equity index called the S&P 500® Sector-Neutral FCF Index (the “index”). “As an independ.

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