ETF Education Report: FIRST TRUST GROWTH STRENGTH ETF (FTGS)

What this ETF is trying to do

The FIRST TRUST GROWTH STRENGTH ETF (ticker: FTGS) is an exchange-traded fund that holds a variety of different companies. Based on its top holdings, it includes many large technology and industrial companies. This report uses data as of August 11, 2026.

What the numbers show

The current price of one share of FTGS is $39.89. When we look at how the price has changed over time, we see different results:

• One-Year Performance: The one-year price return was approximately 16.30%. This measures only the change in the share price. However, the one-year total return was approximately 16.39%. Total return is a more complete measure because it includes both the price change and any distributions paid out.

• Year-to-Date (YTD): The YTD price return and YTD total return are both approximately 12.84%.

• Three-Year Performance: Over the last three years, the three-year price return was approximately 66.21%, while the three-year total return was approximately 67.61%.

To understand the price change, we can look at an estimated price from roughly one year ago, which was approximately $34.30. For example, if you had invested $10,000 into this ETF one year ago based on that estimated price, your investment's value would have grown to approximately $11,630 based on the price return alone, before considering any distributions.

Income and distribution explanation

This ETF has a distribution yield of approximately 7.45%. A distribution yield tells you how much cash the ETF paid out relative to its share price. It is important to remember that a high distribution yield is not the same thing as total return. While these payments provide cash income, they do not guarantee that your original investment (your principal) will stay the same value. In the last 12 months, this ETF had two distributions, which were paid out on an irregular or less frequent basis.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in the fund drops significantly. When a share price falls, it does not always mean the NAV has eroded, but a falling price can be a sign of trouble.

For FTGS, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF. This means that, based on the measured data, there are no signs of the substantial price deterioration that would trigger a severe risk warning.

Top Holdings

The following is a partial list of the top holdings in this ETF. Please note that these are only the largest holdings and the full list contains 51 companies. Holdings can change over time.

• MICROSOFT CORP (2.35%)

• GARMIN LTD (2.30%)

• PALANTIR TECHNOLOGIES INC (2.27%)

• ARISTA NETWORKS INC (2.22%)

• NEWMONT CORP (2.20%)

• AMPHENOL CORP CLASS A (2.16%)

• BROADCOM INC (2.14%)

• INTUIT INC (2.13%)

• RESMED INC (2.13%)

• TAPESTRY INC (2.13%)

Pros

• The ETF has shown positive price returns over the one-year, year-to-date, and three-year periods.

• The erosion-risk measurements appear to be in good standing.

Cons

• Distributions are described as irregular or less frequent, meaning they do not arrive on a set schedule.

Beginner takeaway

When looking at ETFs, it is important to distinguish between "price return" (just the share price) and "total return" (price change plus distributions). While high yields can provide cash, they are not a guarantee of overall profit. Always look at the total return to see how much an investment has actually grown.