First Trust International Developed Capital Strength ETF

First Trust International Developed Capital Strength ETF (FICS) tracks a Nasdaq index of 50 companies in developed markets outside the US. To get in, a company has to pass strict balance-sheet tests and have some of the smallest recent price swings, and each stock gets an equal weight. Its 0.70% expense ratio is five times the 0.14% average of similar international funds, so the case for owning it rests on its quality and stability screens, not on cost.

• Over the year to Oct 27, 2026, FICS returned +7.0%, 7th of 7 among similar funds.
• Its 5-year annualized return was +5.0%.
• Its worst full calendar year was 2022 (-19.5%); its best was 2025 (+20.4%).
• The deepest fall in its price history was 29.2% (Dec 28, 2021 to Sep 27, 2022), recovered by Jun 6, 2024.

As of Jun 30, 2026, the fund held 51 securities; the ten largest made up 22.87% of assets.

• Over the three months to Jun 30, 2026, investors withdrew a net $14.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.24%, +1.65%, +2.61%.

FICS aims to match the price and yield, before fees, of The International Developed Capital Strength Index, which Nasdaq builds and maintains. The fund invests at least 90% of its net assets in the index's stocks. The starting pool is the Nasdaq Developed ex-US Index, which covers developed markets outside the US. Nasdaq then drops a company if it holds less than $500 million in cash, if its long-term debt equals 30% or more of its market value, if its return on equity (profit as a share of shareholders' capital) is 15% or less, or if its shareholder equity is not positive. Only the 500 largest remaining companies stay in the running.

Next, Nasdaq ranks each stock on how much its price swung over the past three months and the past 12 months. The 50 with the lowest combined ranks make the cut. No industry or country may exceed 30% of the index. If one does, its most volatile stock is swapped for the next eligible stock from a different industry or country. All 50 stocks then get equal weights, so a smaller company counts as much as a giant.

The index is rebuilt twice a year, and the fund follows shortly after. Turnover was 51% in the latest prospectus. The fund uses no leverage, options or other derivatives. As of December 31, 2025, it leaned toward financial companies and European issuers.

• FICS charges 0.7% a year, versus an average of 0.14% for the similar funds below (7th of 7, cheapest first).

It adds non-US developed-market stocks, screened for financial strength and lower volatility, alongside a US-heavy portfolio, but its high cost and short history make it a poor fit as a core holding.

FICS adds non-US stocks with a tilt toward well-financed, steadier companies. As of June 30, 2026, Switzerland made up 25.9% of the fund and Canada 19.2%. The steadiness has limits. In the 2022 bear market, the fund fell 29% from January 3 to September 27, 2022, and did not regain its peak until June 6, 2024, about 20 months later. Its worst calendar year was 2022, at -19.4%. Anyone who had to sell shares that year would have locked in losses. The fund launched in December 2020, so it has no record from 2008 or the 2020 crash. Income is modest: the trailing 12-month yield was 1.86% as of October 27, 2026, paid quarterly. The 0.70% fee is far above broad funds such as VEA, at 0.03%. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).