Understanding the FIRST TRUST ACTIVE GLOBAL QUALITY INCOME ETF (AGQI)

The FIRST TRUST ACTIVE GLOBAL QUALITY INCOME ETF (ticker: AGQI) is an exchange-traded fund designed to provide income by investing in global companies. It focuses on "quality" stocks, which generally means companies with strong business characteristics.

What this ETF is trying to do

AGQI seeks to provide investors with income through regular distributions. It does this by holding a variety of stocks from around the world. Based on its top holdings, the fund invests in large global companies across different industries, such as technology, energy, and healthcare.

Top Holdings:

• MICROSOFT CORP (5.88%)

• TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (5.29%)

• EOG RESOURCES INC (5.27%)

• BAE SYSTEMS PLC (5.21%)

• BANK OF AMERICA CORP (4.62%)

• SAMSUNG ELECTRONICS CO LTD PFD (4.05%)

• ALPHABET INC CLASS C (3.89%)

• CARLSBERG AS CLASS B (3.87%)

• COMPAGNIE FINANCIERE RICHEMONT SA CLASS A (3.79%)

• JOHNSON & JOHNSON (3.77%)

*Note: This list is partial and only shows the largest holdings. Holdings can change over time.*

What the numbers show

When looking at how AGQI has performed, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price. For the past year, the one-year price return was approximately 12.84%. Year-to-date (YTD), the price return is approximately 10.53%.

• Total Return: This includes both the share price changes and the money paid out through distributions. The one-year total return was approximately 14.87%, and the YTD total return is approximately 11.99%.

An estimated price from roughly one year ago was $16.16, while the current price is $18.23.

Income and distribution explanation

AGQI provides cash to investors through distributions. The current distribution yield is approximately 1.69%. This means the amount of cash paid out is about 1.69% of the current share price.

The fund usually pays these distributions on a quarterly basis (four times a year). The most recent trailing distributions totaled approximately $0.31 per share.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• Positive Returns: Both the share price and the total return have shown growth over the last year.

• Low Price Erosion Risk: The data shows no detected price erosion.

Cons

• Moderate Income Rating: The fund has an income rating grade of "C."

• Partial Data: Because the holdings list is partial, you cannot see every company the fund owns just by looking at the top holdings.

Beginner takeaway

AGQI is an ETF that focuses on global quality companies and provides regular quarterly income. While it has shown positive price and total returns over the past year, investors should remember that a distribution yield is just one part of an investment. Total return—which includes both price changes and distributions—is a more complete way to see how the fund has performed.