FSCS vs ILCV

FSCSCFirst Trust SMID Capital Strength ETF

ILCVAiShares Morningstar Value ETF

In short

FSCS First Trust pointed its Capital Strength screen at the small and mid cap end of the US market: about 100 names picked by rule, not hunch, filtered for quality, growth and lower volatility.

ILCV Value done the thorough way: roughly 400 large- and mid-cap US stocks screened on five separate value measures, not just cheap book value. Running since 2004 at four basis points, it's one of the cheapest tickets into the value factor.

Stated mandate

FSCS The Fund seeks investment results generally corresponding to the price and yield, before fees and expenses, of the SMID Capital Strength Index. It normally invests at least 80% of net assets, plus investment borrowings, in index securities.

ILCV The fund seeks to track an index of U.S. large- and mid-cap stocks selected with value-oriented measures including forward earnings, book value, sales, cash flow, and dividend yield.

Why people hold it

• FSCS Takes the Capital Strength playbook down the cap ladder: a quality, growth and low-volatility screen applied to US small and mid caps.ftportfolios.com
• Rules run the show. It normally keeps at least 80% of net assets in the index's securities, so you get the screen, not a manager's mood.ftportfolios.com
• A tight roster of roughly 100 US stocks, with cash paid out quarterly.

• ILCV Charges 0.04% a year against a 0.32% median for its factor peer group. Undercuts well-regarded rivals like VONV (0.06%) and FNDX (0.25%).
• Value gets defined five ways: forward earnings, book value, sales, cash flow and dividend yield. Wider lens than a single price-to-book screen.ishares.com
• Spreads the bet across about 400 large- and mid-cap names and distributes quarterly.
• Trading since 2004 and now a multi-billion-dollar fund, it ranks among the strongest implementations in its factor cohort.

Worth knowing

• FSCS The 0.60% annual fee sits well above the typical US multifactor fund. Broad peers like VONV and FNDX charge a fraction of it.
• Thinly traded and modest in assets, so bid-ask spreads can run wider than the household names in the category.
• Screening for balance-sheet quality and lower volatility means the portfolio can look nothing like a plain small-cap index, in either direction.

• ILCV One of the quieter tickers in its category. Thin volume means spreads matter more here than on a mega-cap index fund, and limit orders are the usual tool.
• Value-only by design. It skips the market's priciest growth leaders, so it moves differently from a total-market fund in both directions.ishares.com
• Large and mid caps only. Small-cap value sits outside the mandate.

Full FSCS profile⁠

Full ILCV profile⁠