At a glance
FTCS charges 0.53% a year, above the 0.32% average of the 5 funds most like it (the 5th cheapest of 6). It has $7.65B in assets, the 3rd largest of that group; it paid 1.14% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +8.6% with distributions reinvested (S&P 500: +11.5%), 5th of those 6 funds; over three years it returned +13.5% a year. At its worst it fell 31.9% in the 2020 crash (S&P 500: 33.7%) and 20.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 16 months after the lows. Its ten largest positions make up 23.0% of the fund, out of 51 in all.
The short version
First Trust Capital Strength ETF (FTCS) is an index fund that tracks Nasdaq's Capital Strength Index. The index holds 50 mostly US companies that have plenty of cash, little debt and high returns on equity, picks the ones whose share prices have swung least, and holds each in an equal amount. The expense ratio is 0.53%, above the 0.31% average of similar funds, and the yield was 1.14% as of October 27, 2026.
Price history
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FTCS +8.6% 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 | |
|---|---|---|---|---|---|---|
| FTCS official prospectus, to Dec 31, 2025 | — | +6.39% | — | +7.85% | +10.66% | +9.72% |
| FTCS price data to Oct 27, 2026 | +9.5% | +8.6% | +13.5% | +6.2% | +11.2% | +9.8% |
- Over the year to Oct 27, 2026, FTCS returned +8.6%, 5th of 6 among similar funds.
- Its 5-year annualized return was +6.2% and its 10-year +11.2%.
- In the 2020 COVID crash it fell 31.9% and regained its old high 4.5 months after the low.
- Its worst full calendar year was 2008 (-37.3%); its best was 2009 (+39.7%).
- The deepest fall in its price history was 53.6% (Jul 13, 2007 to Nov 20, 2008), recovered by Feb 11, 2011.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.5% | — |
| 2025 | +6.5% | +6.39% |
| 2024 | +11.2% | +11.21% |
| 2023 | +8.5% | +8.57% |
| 2022 | -10.2% | -10.28% |
| 2021 | +26.7% | +26.61% |
| 2020 | +13.0% | +13.07% |
| 2019 | +26.7% | +26.72% |
| 2018 | -4.2% | -4.09% |
| 2017 | +26.6% | +26.49% |
| 2016 | +8.4% | +8.57% |
| 2015 | +1.3% | — |
| 2014 | +15.9% | — |
| 2013 | +37.6% | — |
| 2012 | +16.1% | — |
| 2011 | -2.8% | — |
| 2010 | +13.8% | — |
| 2009 | +39.7% | — |
| 2008 | -37.3% | — |
| 2007 | +10.3% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 51.2% over that stretch · deepest drop along the way 52.5%, back to its old high 26.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 31.9% over that stretch · deepest drop along the way 31.9%, back to its old high 4.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.9% over that stretch · deepest drop along the way 20%, back to its old high 16 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8800 | |
| 2025 | $0.9600 | -17.2% |
| 2024 | $1.1600 | -1.7% |
| 2023 | $1.1800 | +26.9% |
| 2022 | $0.9300 | +4.5% |
| 2021 | $0.8900 | +41.3% |
| 2020 | $0.6300 | -17.1% |
| 2019 | $0.7600 | +22.6% |
| 2018 | $0.6200 | +5.1% |
| 2017 | $0.5900 | +1.7% |
| 2016 | $0.5800 | +3.6% |
| 2015 | $0.5600 | -27.3% |
| 2014 | $0.7700 | +71.1% |
| 2013 | $0.4500 | -2.2% |
| 2012 | $0.4600 | +9.5% |
| 2011 | $0.4200 | +5.0% |
| 2010 | $0.4000 | +42.9% |
| 2009 | $0.2800 | 0.0% |
| 2008 | $0.2800 | +33.3% |
| 2007 | $0.2100 |
What's inside
As of Jun 30, 2026, the fund held 51 securities; the ten largest made up 23.03% of assets.
| Holding | Weight | |
|---|---|---|
| CISCO SYSTEMS INC | 2.74% | |
| MONSTER BEVERAGE CORP | 2.52% | |
| T. ROWE PRICE GROUP INC | 2.36% | |
| AUTOMATIC DATA PROCESSING INC | 2.25% | |
| CINCINNATI FINANCIAL CORP | 2.24% | |
| AGILENT TECHNOLOGIES INC | 2.20% | |
| JOHNSON & JOHNSON | 2.18% | |
| UNION PACIFIC CORP | 2.18% | |
| VISA INC | 2.18% | |
| MERCK & COMPANY INC | 2.17% | |
| COCA-COLA COMPANY (THE) | 2.16% | |
| APPLE INC | 2.16% | |
| PAYCHEX INC | 2.15% | |
| COLGATE-PALMOLIVE COMPANY | 2.15% | |
| W. R. BERKLEY CORP | 2.14% |
By country
United States 95.7%Ireland 4.2%By asset type
Stocks 99.91%By sector
Sectors of the companies held, for the 86.5% 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 $304.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.12%, -0.59%, +1.00%.
How it works
FTCS normally puts at least 90% of its assets into the stocks in The Capital Strength Index, which Nasdaq builds and maintains. The index starts with the Nasdaq US Benchmark Index and removes stocks that are too small or trade too thinly. A company that remains must then pass four financial tests. It needs at least $1 billion in cash or short-term investments. Its long-term debt must be less than 30% of its market value. Its shareholder equity must be positive. Its return on equity must be above 15% (return on equity is yearly profit as a share of the money shareholders have in the business).
The companies that pass are then ranked by volatility, meaning how much their share prices have moved over the past three and twelve months. Within each industry, only the 15 calmest stocks stay in the running. The 50 stocks with the lowest combined ranks make the index, and each gets an equal weight of about 2%. As of June 30, 2026, the largest holdings were Cisco Systems (2.7%), Monster Beverage (2.5%) and T. Rowe Price (2.4%). The top 10 together made up 23% of the fund.
The index is rebalanced and its members are reviewed every quarter. As a result, portfolio turnover was 117%, so the fund trades more than the value of its whole portfolio in a year, which can add trading costs. The fund holds stocks directly and uses no leverage, options or other derivatives.
What it really costs
- FTCS charges 0.53% a year, versus an average of 0.32% for the similar funds below (5th of 6, cheapest first).
- Of that, 0.48% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
It is a diversified, plain US stock index fund with a 20-year record that could form part of a portfolio's stock allocation, though it costs more than many alternatives.
FTCS spreads money evenly across about 50 financially strong companies, but it is still a stock fund. It fell 52.5% in the 2008 financial crisis, and its worst calendar year was 2008, at -37.3%. Its deepest drop, 53.6%, did not fully recover until February 2011. It fell 31.9% in the 2020 COVID crash and got back to its old high in about 4.5 months. In the 2022 bear market it fell 20%, and recovery took about 16 months. Anyone forced to sell shares or take income during stretches like these would have locked in losses. The yield was 1.14% as of October 27, 2026, paid quarterly, so this is not an income fund. Its 0.53% expense ratio is above the 0.31% peer average. Past results don't predict future ones, and a retirement plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want US stocks screened for large cash holdings, low debt and return on equity above 15%, held in roughly equal 2% stakes.
- Those who want weight spread across financials, consumer staples, health care and industrials, with no single holding above 2.7% as of June 30, 2026.
- Long-term holders who want a long record: the fund launched in 2006 and averaged 10.66% a year over 10 years through December 31, 2025.
Look elsewhere if
- Cost-focused investors: the 0.53% expense ratio ranks 6th of 7 among similar funds. Vanguard Dividend Appreciation ETF (VIG) charges 0.05%.
- Anyone who needs steady income: the trailing yield was 1.14% as of October 27, 2026, paid only quarterly.
- Investors who expect protection in crashes: despite its low-volatility screen, the fund fell 52.5% in 2008 and 31.9% in 2020.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FTCS this fund | — | 0.53% | $7.65B | +8.6% | +13.5% |
| VIG Vanguard Dividend Appreciation ETF | 31% | 0.05% | $130.90B | +15.6% | +19.8% |
| DUHP Dimensional US High Profitability ETF | 30% | 0.21% | $12.28B | +11.7% | +21.2% |
| HUSV First Trust Horizon Managed Volatility Dome… | 29% | 0.7% | $73.8M | +7.4% | +12.4% |
| SEIQ SEI Enhanced U.S. Large Cap Quality Factor … | 25% | 0.15% | $663.8M | +10.6% | +18.4% |
| BDIV AAM Brentview Dividend Growth ETF | 23% | 0.49% | $6.7M | +11.1% | — |
Questions investors ask
Is FTCS good for retirement?
FTCS can serve as part of the stock side of a retirement portfolio, but it does not shield savers from crashes. It fell 52.5% in the 2008 financial crisis and took until early 2011 to recover. It fell 20% in the 2022 bear market. Its yield was a modest 1.14% as of October 27, 2026, and its 0.53% expense ratio is above the 0.31% average of similar funds. Over the 10 years through December 31, 2025, it returned an average of 10.66% a year.
What's the difference between FTCS and VIG?
The main differences are cost, size and how stocks are picked. FTCS chooses 50 cash-rich, low-debt, low-volatility stocks and weights them equally. Vanguard Dividend Appreciation ETF (VIG) follows a dividend-growth approach. About 31% of their holdings overlap. VIG charges 0.05% against 0.53% for FTCS, and it held about $130.9 billion as of July 31, 2026. VIG returned 16% over one year and 20.5% a year over three years through October 29, 2026. FTCS returned 8.6% and 13.5% through October 27, 2026.
Does FTCS pay monthly dividends?
No. FTCS pays dividends quarterly, not monthly. As of October 27, 2026, its trailing 12-month yield was 1.14%. That is low for anyone looking to live on portfolio income. The fund picks companies for financial strength and low price swings, not for high dividends. Its total return has come mostly from share price gains rather than payouts.
What are the top holdings in FTCS?
As of June 30, 2026, the largest holdings were Cisco Systems (2.7%), Monster Beverage (2.5%), T. Rowe Price (2.4%), Automatic Data Processing (2.3%) and Cincinnati Financial (2.2%). Because the index weights its 50 stocks equally at each quarterly rebalance, no single company dominates, and the top 10 made up 23% of assets. The largest sectors were financials (14.4%), consumer staples (14.3%), health care (13.4%) and industrials (12.9%).
Is FTCS a low volatility ETF?
Partly. The index ranks stocks by how much their prices have moved over three and twelve months and keeps the calmest, after first screening for financial strength. Volatility over the year to October 27, 2026 was 12.9%. Its beta was 0.29, meaning the fund moved much less than the overall market over that year. The prospectus warns that low-volatility stocks may lag in some markets, and the fund still fell 53.6% at its deepest, during 2007–2008.