(AFLG) First Trust Active Factor - Ratings and Ratios

The First Trust Active Factor Large Cap ETF (AFLG) is an actively managed exchange-traded fund that focuses on investing in large-cap U.S. equity securities. The funds investment strategy is centered around companies with a market capitalization that meets or exceeds the minimum threshold of a widely recognized large-cap index, such as the Stuttgart Goldman Sachs ActiveBeta US Large Cap (USD) index.

To evaluate the funds performance, key metrics to consider include its tracking error relative to the benchmark index, Sharpe ratio, and information ratio. A lower tracking error indicates that the fund is closely following its benchmark, while a higher Sharpe ratio suggests that the fund is generating excess returns relative to its volatility. The information ratio can provide insight into the funds risk-adjusted performance relative to its benchmark.

In terms of portfolio composition, it would be essential to examine the funds sector allocation, top holdings, and factor exposures (e.g., value, momentum, size, and profitability). This analysis can help identify potential sources of alpha and assess the funds overall investment strategy. Additionally, monitoring the funds turnover rate and average market capitalization can provide insight into its trading activity and adherence to its large-cap focus.

From a risk management perspective, it is crucial to assess the funds volatility, beta, and drawdowns. A comparison of these metrics to those of its benchmark and peers can help investors understand the funds risk profile and potential downside. Furthermore, examining the funds dividend yield and payout consistency can be important for income-focused investors.