XPND Profile
The First Trust Expanded Technology ETF is designed to provide investors with exposure to a broad range of technology-driven sectors by investing predominantly in the common stocks of companies identified by the funds advisor as key players in the information technology, consumer discretionary, and communication services sectors. These companies, collectively referred to as "Expanded Technology Companies," are characterized by their substantial reliance on or integration with technology in their operations.
Under normal market conditions, the fund will allocate at least 80% of its net assets to these Expanded Technology Companies. This includes firms across various sub-sectors within technology, such as software, hardware, and IT services, as well as consumer discretionary and communication services companies whose core operations are significantly driven by technological advancements. The focus is on capturing the growth potential of companies that leverage technology to drive their business models and market success.
The ETF's investment strategy involves a concentrated approach, meaning it will invest more than 25% of its assets in industries or groups of industries within the information technology sector. This concentration allows the fund to capitalize on trends and innovations within technology, providing targeted exposure to areas expected to experience substantial growth. By focusing heavily on this sector, the fund aims to benefit from the high growth potential of technology-driven companies.
As a non-diversified fund, the ETFs holdings are heavily weighted in the technology sector, reflecting its strategy to maximize exposure to high-growth technology companies. Investors should be aware that this concentrated approach increases the fund's sensitivity to sector-specific risks and market fluctuations, but also offers the potential for significant returns from technology-driven growth.
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