Key Takeaways
- • FTLS maintains $2.49 billion in net assets with a current NAV of $75.62 per share, demonstrating stable asset base for an actively managed long/short equity strategy.
- • Technology sector dominates long exposure at 33.02%, followed by Financials (14.14%) and Health Care (11.96%), reflecting concentrated positioning in growth-oriented segments as of August 7, 2026.
- • Year-to-date total return of 6.83% positions the fund competitively, with a notably low beta of 0.48 (5-year monthly) indicating reduced systematic risk relative to broader equity markets.
- • Typically maintains 90-100% net long exposure with 0-50% short positions, employing earnings quality as the primary stock selection criterion in a 1.38% net expense ratio structure.
- • Lowest volatility profile among alternative ETFs with 0.88% current yield and P/E ratio of 25.58-26.31, appealing to institutional investors seeking equity exposure with downside protection through active short positioning.
Summary
The First Trust Long/Short Equity ETF (FTLS) continues to demonstrate consistent performance characteristics as a actively managed alternative equity vehicle. As of August 14, 2026, the fund maintains $2.49 billion in net assets with a net asset value of $75.62 per share, reflecting stable investor demand for its dual-positioning strategy in U.S.-listed equities with exposure to both domestic and foreign securities.
The fund's sector allocation reveals a pronounced tilt toward technology and financial services. Technology represents the largest long exposure at 33.02% of assets, followed by Financials at 14.14% and Health Care at 11.96%. This composition reflects positioning within sectors characterized by higher earnings growth expectations, while the fund's active management framework maintains flexibility to adjust exposure through both long purchases and short sales as market conditions and earnings quality metrics evolve.
Operationally, FTLS maintains a disciplined net-long stance, typically positioning at 90-100% net long exposure while deploying 0-50% of assets in short positions. This structure differentiates the fund from pure long-only equity strategies while maintaining substantial upside participation in bull markets. The fund's risk profile remains notably defensive: a five-year monthly beta of 0.48 indicates that the strategy captures approximately half the volatility of broader equity indices, a characteristic particularly valuable for institutional portfolios seeking equity participation with reduced tail risk.
Performance metrics through the year-to-date period show 6.83% total return, supported by the fund's earnings-quality selection methodology. With a forward P/E ratio between 25.58 and 26.31 and a current yield of 0.88%, the fund reflects positioning in quality compounders trading at moderate valuation premiums. The 1.38% net expense ratio—inclusive of margin interest and short dividend expenses—remains competitive within the actively managed alternative ETF space, with FTLS holding position as the largest alternative ETF by assets under management.
The fund's sector allocation reveals a pronounced tilt toward technology and financial services. Technology represents the largest long exposure at 33.02% of assets, followed by Financials at 14.14% and Health Care at 11.96%. This composition reflects positioning within sectors characterized by higher earnings growth expectations, while the fund's active management framework maintains flexibility to adjust exposure through both long purchases and short sales as market conditions and earnings quality metrics evolve.
Operationally, FTLS maintains a disciplined net-long stance, typically positioning at 90-100% net long exposure while deploying 0-50% of assets in short positions. This structure differentiates the fund from pure long-only equity strategies while maintaining substantial upside participation in bull markets. The fund's risk profile remains notably defensive: a five-year monthly beta of 0.48 indicates that the strategy captures approximately half the volatility of broader equity indices, a characteristic particularly valuable for institutional portfolios seeking equity participation with reduced tail risk.
Performance metrics through the year-to-date period show 6.83% total return, supported by the fund's earnings-quality selection methodology. With a forward P/E ratio between 25.58 and 26.31 and a current yield of 0.88%, the fund reflects positioning in quality compounders trading at moderate valuation premiums. The 1.38% net expense ratio—inclusive of margin interest and short dividend expenses—remains competitive within the actively managed alternative ETF space, with FTLS holding position as the largest alternative ETF by assets under management.
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