At a glance
FTCE charges 0.6% a year, above the 0.46% average of the 6 funds most like it (the 6th cheapest of 7). It has $81.2M in assets, the 6th largest of that group; it paid 0.72% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +11.4% with distributions reinvested (S&P 500: +11.5%), 6th of those 7 funds. Its ten largest positions make up 38.3% of the fund, out of 101 in all.
The short version
First Trust New Constructs Core Earnings Leaders ETF (FTCE) tracks a Bloomberg index of 100 US companies. They are picked by how their "core" earnings compare with reported earnings once unusual gains and losses hidden in company filings are stripped out. The fund keeps its sector weights in line with the broad market. At 0.60% a year, it costs more than most funds with overlapping holdings, and its record only goes back to October 2024.
Price history
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FTCE +11.4% 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 | |
|---|---|---|---|---|---|---|
| FTCE official prospectus, to Dec 31, 2025 | — | +25.93% | — | — | — | +20.30% |
| FTCE price data to Oct 27, 2026 | +11.9% | +11.4% | — | — | — | +18.2% |
- Over the year to Oct 27, 2026, FTCE returned +11.4%, 6th of 7 among similar funds.
- Its worst full calendar year was 2025 (+26.1%); its best was 2025 (+26.1%).
- The deepest fall in its price history was 18.1% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 11, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.9% | — |
| 2025 | +26.1% | +25.93% |
| 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) | $0.1700 | |
| 2025 | $0.2400 |
What's inside
As of Jun 30, 2026, the fund held 101 securities; the ten largest made up 38.29% of assets.
| Holding | Weight | |
|---|---|---|
| SEAGATE TECHNOLOGY HOLDINGS PLC | 4.65% | |
| INTERNATIONAL BUSINESS MACHINES CORP | 4.56% | |
| QUALCOMM INC | 4.37% | |
| CROWDSTRIKE HOLDINGS INC | 4.13% | |
| ELI LILLY & COMPANY | 4.13% | |
| META PLATFORMS INC | 3.87% | |
| JP MORGAN CHASE & COMPANY | 3.59% | |
| STARBUCKS CORP | 3.43% | |
| BOOKING HOLDINGS INC | 2.93% | |
| APPLOVIN CORP | 2.64% | |
| VISA INC | 2.38% | |
| SERVICENOW INC | 2.28% | |
| CADENCE DESIGN SYSTEMS INC | 2.26% | |
| GENERAL MOTORS COMPANY | 2.05% | |
| PEPSICO INC | 1.92% |
By country
United States 90.4%Ireland 7.08%Netherlands 1.57%Curaçao 0.86%By asset type
Stocks 99.91%By sector
Sectors of the companies held, for the 83.4% 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 added a net $7.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.16%, +10.71%, -4.20%.
How it works
FTCE tracks the Bloomberg New Constructs Core Earnings Leaders Index. Bloomberg Index Services builds and runs the index, and First Trust, the fund's adviser, has no say over what goes in it. The fund normally holds every stock in the index at its index weight. The index starts with the companies in the Bloomberg US 1000 Index. Research firm New Constructs reads their filings, including footnotes and management's discussion, and strips out unusual gains and losses to arrive at "Core Earnings." It then calculates "Earnings Capture": core earnings minus reported earnings, divided by total assets.
The top 30% of companies in each of 11 sectors on that measure are eligible. The three largest in each sector go in first, ranked by free-float market value (the value of shares available to public investors). The largest of the rest are then added until the index reaches 100 stocks. Each stock is weighted by its size, with a 4.5% cap at each rebalance. Sector weights are set to match the Bloomberg US 1000, so the stocks differ from the broad market but the sector mix doesn't.
The index is rebuilt every quarter, in January, April, July and October. Portfolio turnover was 110%, meaning the fund traded more than the value of its whole portfolio in a year. That trading has costs that aren't included in the expense ratio. The fund uses no leverage, options or derivatives.
What it really costs
- FTCE charges 0.6% a year, versus an average of 0.46% for the similar funds below (6th of 7, cheapest first).
In a retirement portfolio
It is a small, fairly new, rules-based stock-picking approach that could sit beside a broad index fund rather than replace one.
FTCE could add a tilt toward companies picked for earnings quality while keeping sector weights close to the broad market. Its history is short. It launched in October 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its deepest drop was 18.1%, from February 19 to April 8, 2025. It recovered by June 11, 2025, about two months later. Anyone who had to sell during that slide would have locked in the loss. Its only full calendar year, 2025, returned 25.93%. Income is small: the trailing yield was 0.72% as of October 27, 2026, paid quarterly. The 0.60% expense ratio is above the 0.46% average for funds with overlapping holdings. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a rules-based tilt toward companies screened by New Constructs' review of unusual gains and losses in company filings.
- Those who want different stocks from the broad market but sector weights matched to the Bloomberg US 1000, avoiding big sector bets.
- People comfortable with 110% turnover and a top ten that made up about 38% of assets as of June 30, 2026.
Look elsewhere if
- Cost-focused investors: the 0.60% expense ratio ranks 6th of 7 among funds with overlapping holdings, and DUHP charges 0.21%.
- Income seekers: the trailing yield was 0.72% as of October 27, 2026, paid quarterly.
- Investors who want a long track record or a large fund: FTCE launched in October 2024 and held about $81 million as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FTCE this fund | — | 0.6% | $81.2M | +11.4% | — |
| DUHP Dimensional US High Profitability ETF | 26% | 0.21% | $12.28B | +11.7% | +21.2% |
| PFM Invesco Dividend Achievers™ ETF | 25% | 0.52% | $789.8M | +13.4% | +19.7% |
| VSLU Applied Finance Valuation Large Cap ETF | 24% | 0.49% | $545.8M | +12.5% | +24.8% |
| WOMN Tidal Trust III YWCA WOMENS EMPOWERMENT ETF | 24% | 0.75% | $55.1M | +11.0% | +18.1% |
| HAPI Harbor Human Capital Factor US Large Cap ETF | 24% | 0.35% | $490.2M | +12.2% | +24.5% |
| MODL VictoryShares WestEnd U.S. Sector ETF | 20% | 0.46% | $1.02B | +11.9% | +23.8% |
Questions investors ask
What does FTCE invest in?
FTCE holds about 100 stocks chosen from the Bloomberg US 1000 Index for earnings quality. Research firm New Constructs adjusts each company's reported earnings for unusual items, some hidden in footnotes. The index then ranks companies on the gap between core and reported earnings, scaled by total assets. As of June 30, 2026, the largest holdings were Seagate Technology, IBM, Qualcomm, CrowdStrike and Eli Lilly. The top 10 made up about 38% of assets.
What is the FTCE expense ratio?
FTCE's expense ratio is 0.60% a year, according to the prospectus filed July 29, 2026. All of it is the management fee, and there is no fee waiver. Funds with overlapping holdings averaged 0.46%, and FTCE ranks 6th of 7 on cost. DUHP charges 0.21% and HAPI 0.35%. Portfolio turnover of 110% may also add trading costs, which the expense ratio doesn't include.
What's the difference between FTCE and DUHP?
The main differences are cost, size and how they pick stocks. FTCE follows a Bloomberg index that screens for earnings quality using New Constructs research and matches broad-market sector weights. Dimensional's DUHP is named for a focus on high profitability. About 26% of their holdings overlap. DUHP costs 0.21% against FTCE's 0.60%. It held about $12.3 billion as of July 31, 2026, while FTCE held $81 million as of June 30, 2026. One-year returns to October 27, 2026 were close: 11.7% versus 11.4%.
Does FTCE pay dividends?
Yes. FTCE pays dividends every quarter, but the amounts are small. Over the 12 months to October 27, 2026, it paid about $0.20 per share, a trailing yield of 0.72%. The fund picks stocks for earnings quality, not dividend income, and some of its largest holdings are technology companies. Investors looking mainly for regular income may want to compare it with funds built around dividends.
How has FTCE performed since it launched?
FTCE returned 25.93% in 2025, its first full calendar year, according to its prospectus. From its October 2, 2024 launch through December 31, 2025, it returned 20.3% a year on average. Based on price, it gained 11.4% over the year to October 27, 2026, ranking 6th of 7 among funds with overlapping holdings. Its steepest drop was 18.1% in early 2025, and it recovered in about two months. A record this short says little about how it might do in a long bear market.