“The Sabrient/Gradient Earnings Quality Rank mentioned above is a proprietary forensic accounting process used to rate the quality or lack thereof for earnings. Aggressive accounting practices will garner low quality earnings power (prospective short positions) and conversely conservative accounting practices will be deemed higher quality and typically a higher stock prices (prospective long positions),” according to Seeking Alpha. [Consider These Alternative ETFs]
Top long positions in FTLS include Apple (NasdaqGS: AAPL), Reynolds American (NYSE: RAI), Altria (NYSE: MO) and Boeing (NYSE: BA). The ETF’s short positions include the SPDR S&P 500 ETF (NYSEArca: SPY) and Microsoft (NasdaqGS: MSFT).
FTLS charges 1.17% per year.
First Trust Long/Short Equity ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple and SPY.