First Trust Long/Short Equity ETF company info

What does First Trust Long/Short Equity ETF do?
First Trust Long/Short Equity ETF (NYSE:FTLS) operates as an exchange-traded fund that strategically invests in both long and short positions within the equity market. The ETF seeks to capitalize on investment opportunities by taking long positions in undervalued stocks while shorting those it considers overvalued, aiming to provide investors with a hedge against market volatility and potential returns under various market conditions. Its objectives center around offering an alternative investment strategy that diversifies investor portfolios and mitigates risk through market ups and downs. With a focus on both growth and protection, First Trust Long/Short Equity ETF endeavors to navigate the complexities of the equity markets to achieve long-term financial goals for its investors.
First Trust Long/Short Equity ETF company media
Company Snapshot

Is First Trust Long/Short Equity ETF a public or private company?

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Ownership
Public

How many people does First Trust Long/Short Equity ETF employ?

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Employees
1,072

What sector is First Trust Long/Short Equity ETF in?

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Sector
ETF

Where is the head office for First Trust Long/Short Equity ETF?

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Head Office
Wheaton, United States

What year was First Trust Long/Short Equity ETF founded?

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Year Founded
2014
What does First Trust Long/Short Equity ETF specialise in?
/Equity ETF /Long/Short Strategies /Investment Management /Market Exposure /Risk Management /Asset Allocation

What are the products and/or services of First Trust Long/Short Equity ETF?

Overview of First Trust Long/Short Equity ETF offerings
Long Exposure to Potential Growth: The ETF holds a basket of securities that the fund manager believes will experience price appreciation in the future (long positions). These companies might be in various sectors with strong growth potential.
Short Exposure to Anticipated Decline: The ETF also holds short positions on certain securities. This means the fund borrows shares of companies the manager believes will decrease in value and sells them, profiting if the price goes down and they can repurchase the shares at a lower price to return to the lender.
Active Management Strategy: Unlike passively managed ETFs that track an index, Long/Short Equity ETFs are actively managed by professional investment teams. The managers research companies, identify potential long and short candidates, and make decisions about portfolio allocation.
Potential for Amplified Returns: Due to the long/short strategy, these ETFs have the potential for amplified returns compared to traditional long-only equity funds. If the long positions experience significant price appreciation and the short positions lose value, the ETF could see magnified gains.
Downside Risk Management: The short positions can act as a hedge against potential market downturns. If the overall stock market declines, the losses in the long positions might be offset by gains from the short positions. However, this isn't guaranteed, and the ETF can still experience losses in both long and short positions.
Higher Expense Ratios: Due to the active management and potentially complex strategies involved, Long/Short Equity ETFs typically have higher expense ratios compared to passively managed ETFs.