FCFY: FIRST TRUST S&P 500 DIVERSIFIED FREE CASH FLOW ETF
ETF Education Report: FIRST TRUST S&P 500 DIVERSIFIED FREE CASH FLOW ETF (FCFY)
What this ETF is trying to do
The FIRST TRUST S&P 500 DIVERSIFIED FREE CASH FLOW ETF (ticker: FCFY) is an exchange-traded fund. While the specific strategy isn't detailed in the data, it focuses on companies within the S&P 500. Based on its name, it looks for companies with "free cash flow."
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out.
For FCFY, the numbers show:
• Year-to-Date (YTD): The price return is approximately 8.61%, while the total return is approximately 9.40%.
• One-Year: The price return was approximately 9.95%, and the total return was approximately 11.62%.
• Three-Year: The price return was approximately 52.53%, and the total return was approximately 60.05%.
To give you an idea of price movement, the estimated price from roughly one year ago was $27.32. The current price is $30.04.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. FCFY has a distribution yield of approximately 1.35%. This means the cash paid out is about 1.35% of the ETF's price. The fund usually pays these out quarterly, and it has made 4 payments over the last 12 months.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases significantly over time. It is important to remember that a falling share price does not always mean NAV erosion is happening.
In the case of FCFY, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• CENTENE CORP: 4.05%
• SKYWORKS SOLUTIONS INC: 3.48%
• HP INC: 3.39%
• NETAPP INC: 3.14%
• QUALCOMM INC: 2.91%
• GODADDY INC CLASS A: 2.76%
• OMNICOM GROUP INC: 2.64%
• COMCAST CORP CLASS A: 2.52%
• GEN DIGITAL INC: 2.34%
• WORKDAY INC CLASS A: 2.16%
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurement is considered "good."
Cons
• The distribution yield (1.35%) is relatively low compared to some other types of income-focused funds.
Beginner takeaway
When studying FCFY, remember that total return is the most complete picture because it includes both price changes and cash payments. Always look at both numbers to see how the fund has actually performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | CENTENE CORP | CNC | 4.05% |
| 2 | SKYWORKS SOLUTIONS INC | SWKS | 3.48% |
| 3 | HP INC | HPQ | 3.39% |
| 4 | NETAPP INC | NTAP | 3.14% |
| 5 | QUALCOMM INC | QCOM | 2.91% |
| 6 | GODADDY INC CLASS A | GDDY | 2.76% |
| 7 | OMNICOM GROUP INC | OMC | 2.64% |
| 8 | COMCAST CORP CLASS A | CMCSA | 2.52% |
| 9 | GEN DIGITAL INC | GEN | 2.34% |
| 10 | WORKDAY INC CLASS A | WDAY | 2.16% |