At a glance
FCFY charges 0.6% a year, above the 0.3% average of the 3 funds most like it (the most expensive of 4). It has $1.3M in assets, the 4th largest of that group; it paid 1.28% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +14.0% with distributions reinvested (S&P 500: +11.5%), the weakest of those 4 funds; over three years it returned +19.9% a year. Its ten largest positions make up 29.4% of the fund, out of 100 in all.
The short version
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) tracks the S&P 500 Sector-Neutral FCF Index: about 100 S&P 500 companies with high free cash flow yields (spare cash relative to company value) for their sector. It mirrors the S&P 500's sector mix but weights holdings by that yield, not company size. Its 0.60% expense ratio is double the 0.30% similar-fund average, and net assets were just $1.35 million as of June 30, 2026.
Price history
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FCFY +14.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FCFY official prospectus, to Dec 31, 2025 | — | +16.62% | — | — | — | +16.41% |
| FCFY price data to Oct 27, 2026 | +11.7% | +14.0% | +19.9% | — | — | +16.2% |
- Over the year to Oct 27, 2026, FCFY returned +14.0%, 4th of 4 among similar funds.
- Its worst full calendar year was 2024 (+11.3%); its best was 2025 (+16.8%).
- The deepest fall in its price history was 21.4% (Feb 19, 2025 to Apr 8, 2025), recovered by Jul 2, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.7% | — |
| 2025 | +16.8% | +16.62% |
| 2024 | +11.3% | +11.28% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2700 | |
| 2025 | $0.4100 | -4.7% |
| 2024 | $0.4300 |
What's inside
As of Jun 30, 2026, the fund held 100 securities; the ten largest made up 29.4% of assets.
| Holding | Weight | |
|---|---|---|
| CENTENE CORP | 4.06% | |
| SKYWORKS SOLUTIONS INC | 3.84% | |
| QUALCOMM INC | 3.14% | |
| HP INC | 3.05% | |
| NETAPP INC | 3.01% | |
| COMCAST CORP | 2.71% | |
| GODADDY INC | 2.69% | |
| OMNICOM GROUP INC | 2.49% | |
| GEN DIGITAL INC | 2.34% | |
| TRADE DESK INC (THE) | 2.07% | |
| ADOBE INC | 2.07% | |
| WORKDAY INC | 2.06% | |
| GARTNER INC | 1.88% | |
| FOX CORP | 1.78% | |
| FIRST SOLAR INC | 1.73% |
By country
United States 95.5%Ireland 1.97%Bermuda 1.27%Jersey 0.96%By asset type
Stocks 99.7%By sector
Sectors of the companies held, for the 63.4% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $20K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.34%, +5.89%, -5.28%.
How it works
FCFY is a First Trust index fund. It aims to match, before fees, the S&P 500 Sector-Neutral FCF Index, built by S&P Dow Jones Indices, and normally holds every stock in it. Free cash flow is the cash a company has left after operating costs, interest, taxes and capital spending. Free cash flow yield compares that cash with the company's value. The index ranks S&P 500 companies by that yield within each sector and keeps the top 20%. It then drops companies with zero or negative yields, worst first, but always keeps at least 10% of each sector's S&P 500 company count.
S&P rebuilds the index twice a year and resets each sector's weight to match the S&P 500's, so the fund avoids deliberate sector bets. Within a sector, stocks are weighted by free cash flow yield, not company size, with a 0.25% floor and a 5.00% cap. The fund trades shortly after changes are announced. Its annual turnover (the share of holdings replaced) was 78%.
The fund is classified as “non-diversified,” which means it may put more money in fewer companies than a diversified fund. As of June 30, 2026, it held 100 stocks. The top 10 made up 29.4% of assets, led by Centene (4.1%), Skyworks Solutions (3.8%) and Qualcomm (3.1%). It held no derivatives and uses no leverage.
What it really costs
- FCFY charges 0.6% a year, versus an average of 0.3% for the similar funds below (4th of 4, cheapest first).
In a retirement portfolio
Its free cash flow tilt on S&P 500 stocks fits as a smaller add-on rather than a foundation, given its 0.60% cost, about $1.35 million in assets as of June 30, 2026, and a record dating only to August 2023.
FCFY could add a free cash flow tilt to broad US stock holdings. It launched on August 23, 2023, so it has no record through the 2008, 2020 or 2022 downturns. Both of its full calendar years were gains: 11.28% in 2024 and 16.62% in 2025. Its deepest drop was 21.4%, from February 19 to April 8, 2025. It had fully recovered by July 2, 2025, about 2.8 months after the low. Anyone withdrawing money during that drop would have cashed out shares at depressed prices.
Income is modest: a 1.28% yield over the year to October 27, 2026, paid quarterly. The 0.60% expense ratio is double the 0.30% average of similar funds. Net assets were only about $1.35 million as of June 30, 2026, small enough to raise closure risk. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 companies picked for free cash flow while keeping the S&P 500's sector weights, avoiding large sector bets.
- Investors wanting holdings weighted by cash flow yield rather than size, led by Centene, Skyworks Solutions and Qualcomm as of June 30, 2026.
- Investors whose main holding is a broad S&P 500 fund and who want a small, rules-based free cash flow tilt alongside it.
Look elsewhere if
- Cost-focused investors: the 0.60% expense ratio is the highest of the four funds compared, versus 0.15% for SEIV and 0.25% for FLOW.
- Anyone wary of tiny funds: net assets were about $1.35 million as of June 30, 2026, which can mean higher trading costs and closure risk.
- Investors focused on track record: launched in August 2023, it trailed FLOW, SEIV and KNGZ over one and three years to October 27, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What stocks are in FCFY?
FCFY holds about 100 S&P 500 stocks with high free cash flow yields for their sector, tracking the S&P 500 Sector-Neutral FCF Index. As of June 30, 2026, the largest holdings were Centene (4.1%), Skyworks Solutions (3.8%), Qualcomm (3.1%), HP (3.0%), NetApp (3.0%), Comcast (2.7%), GoDaddy (2.7%), Omnicom Group (2.5%), Gen Digital (2.3%) and The Trade Desk (2.1%). The top 10 made up 29.4% of assets, and 95.5% was in US companies.
What's the difference between FCFY and FLOW?
FCFY costs more than FLOW and has trailed it. Global X U.S. Cash Flow Kings 100 ETF (FLOW) shares more holdings with FCFY than any other similar fund, with a 34% overlap in their latest holdings reports. FLOW charges 0.25% a year, compared with FCFY's 0.60%. Through October 27, 2026, FLOW returned 31.1% over one year and 24.4% a year over three years. FCFY returned 14% and 19.9%. FLOW is also larger, with about $33.1 million in net assets as of August 31, 2026.
What is FCFY's expense ratio?
FCFY's expense ratio is 0.60% a year, according to its prospectus filed April 30, 2026, and all of it is the management fee. That is the highest of the four funds compared and double the 0.30% average of the three similar funds. SEI Enhanced U.S. Large Cap Value Factor ETF (SEIV) charges 0.15%, Global X U.S. Cash Flow Kings 100 ETF (FLOW) 0.25% and First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) 0.50%. Trading costs from its 78% turnover are not included.
Does FCFY pay monthly dividends?
No. FCFY pays dividends quarterly, not monthly. Over the year to October 27, 2026, it paid about $0.39 per share, a yield of 1.28%. Income is a side effect rather than the goal. The index picks stocks on free cash flow yield, not dividend yield, so the payout is modest. The fund passes along dividends from the stocks it holds, so payments can vary from quarter to quarter.
How has FCFY performed since it launched?
FCFY returned 16.41% a year from its August 23, 2023 launch through December 31, 2025, according to its prospectus. It gained 11.28% in 2024 and 16.62% in 2025. Through October 27, 2026, it returned 14% over one year and 19.9% a year over three years. Its deepest drop was 21.4%, from February 19 to April 8, 2025, and it recovered by July 2, 2025. It trailed all three similar funds over one and three years.