First Trust SMID Growth Strength ETF

First Trust SMID Growth Strength ETF (FSGS) is an index fund tracking Nasdaq's SMID Growth Strength Index: 100 small and mid-sized, mostly US companies that pass financial-strength tests such as low debt, at least $100 million in cash and return on equity above 10%, held in equal amounts. What sets it apart is that screen and its cost: an expense ratio (annual fee) of 0.60%, against a 0.30% average for similar funds.

• Over the year to Oct 27, 2026, FSGS returned +4.5%, 7th of 8 among similar funds.
• Its worst full calendar year was 2025 (+2.4%); its best was 2025 (+2.4%).
• The deepest fall in its price history was 23.5% (Dec 4, 2024 to Apr 8, 2025), recovered by Jul 2, 2026.

As of Jun 30, 2026, the fund held 101 securities; the ten largest made up 13.53% of assets.

• Over the three months to Jun 30, 2026, investors withdrew a net $1.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.93%, +0.82%, +2.36%.

FSGS, an index fund, puts at least 80% of its net assets into the stocks of The SMID Growth Strength Index, which Nasdaq owns and maintains, and tries to match the index's performance before fees. Candidates come from the Nasdaq US Small Cap and Mid Cap indexes (SMID means small and mid-sized) and must meet size, trading-history and liquidity (ease of trading) rules.

Then come financial-strength screens: at least $100 million in cash or short-term investments, long-term debt below 30% of stock market value, positive shareholder equity, positive revenue and cash flow, and return on equity (profit relative to shareholder capital) above 10%. The index ranks the survivors, keeps 100 and weights them equally, so smaller companies count as much as larger ones. As of June 30, 2026, the fund held 101 stocks; the top 10, led by Sterling Infrastructure, Progyny and MYR Group, made up 13.5%.

Each quarter the index reviews its members and resets weights to equal, and the fund follows shortly after. That contributes to 135% portfolio turnover, meaning it traded more than the value of its portfolio in a year; those trading costs sit outside the expense ratio. The fund concentrates in an industry when the index does. As of June 30, 2026, industrials companies were a significant share, and it held no derivatives.

• FSGS charges 0.6% a year, versus an average of 0.3% for the similar funds below (7th of 8, cheapest first).

Its 100 equally weighted small and mid-sized growth stocks have fallen as much as 32.76% in a single quarter, and it pays almost no income, so it suits a smaller supporting role beside a core fund.

FSGS could add a slice of financially strong small and mid-sized growth companies beside a broader core fund. It launched in June 2017, so it has no 2008 record. It fell 32.76% in the first quarter of 2020, then rose 32.04% in the fourth quarter to end the year up 10.10%. It lost 12.92% in 2022, its worst full calendar year. Between December 4, 2024, and April 8, 2025, it fell 23.5%, and it took about 15 months to regain that level. Anyone who had to withdraw money during drops like these would lock in losses. Income is negligible: the yield was 0.03% as of October 27, 2026, paid once a year. Its expense ratio (annual fee) of 0.60% compares with a 0.30% average for similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.