(FST) First Trust Canadian - Ratings and Ratios

The First Trust Canadian Capital Strength ETF (FST) is a Canadian equity-focused exchange-traded fund (ETF) listed on the Toronto Stock Exchange (TO). It is designed to provide exposure to Canadian companies with strong financial fundamentals, leveraging the Morningstar Canada GR CAD Index for its portfolio construction. The fund is managed by First Trust, a well-established provider of ETF solutions, and is tailored for investors seeking long-term capital appreciation through a diversified basket of Canadian equities. The ETFs holdings are selected based on criteria such as financial health, profitability, and valuation, aiming to capture the performance of companies with robust balance sheets and growth potential.

From a technical perspective, FST is currently trading at CAD 55.54, below its 20-day and 50-day simple moving averages (SMA) of CAD 57.68 and CAD 56.94, respectively, but above its 200-day SMA of CAD 53.83. This indicates short-term weakness but a longer-term uptrend. The Average True Range (ATR) of 0.51 reflects moderate price volatility. The funds average trading volume over the past 20 days is 1,926 shares, suggesting relatively low liquidity. With assets under management (AUM) of CAD 111.35 million, FST is a modestly sized ETF in the Canadian equity category.

Over the next three months, based on and , FST is expected to face headwinds due to its current price hovering near a critical support level of CAD 55.00, with resistance at CAD 58.00. The funds short-term momentum is bearish, as it trades below its 20-day and 50-day SMAs. However, the longer-term trend remains intact, supported by the 200-day SMA. From a fundamental perspective, the Canadian equity market is expected to remain stable, driven by strength in key sectors such as financials and energy, which are heavily represented in the ETFs portfolio. Despite this, the low average daily volume may result in limited upside potential in the near term. Overall, FST is projected to trade sideways with a slight bearish bias, targeting a range of CAD 54.50 to CAD 57.50 over the next quarter.