First Trust EIP Power Solutions ETF Stock Price, News & Analysis

First Trust EIP Power Solutions ETF (ticker: FPWR) is an exchange-traded fund in the First Trust Exchange-Traded Fund IV series. According to First Trust Advisors L.P. ("FTA"), the fund is advised by FTA and sub-advised by Energy Income Partners, LLC ("EIP"). The ETF focuses on equity securities of companies that EIP identifies as Power Solutions Companies, reflecting an investment philosophy centered on the electric power system and related infrastructure.

FPWR was previously known as the First Trust EIP Carbon Impact ETF (ticker: ECLN). The fund’s name, ticker and related investment strategies were changed, and the updated mandate emphasizes companies with a strategic connection to the generation or transmission of electric power, or to making the electric power system safer, cleaner, more reliable, or lower in cost. This shift also included an expansion of the universe of eligible companies to include contracted developers and/or owners of nuclear energy systems, as described by FTA.

Investment focus and strategy

Under its non-fundamental investment policy, the First Trust EIP Power Solutions ETF states that, under normal market conditions, it will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the equity securities of companies that EIP identifies as Power Solutions Companies. These are companies that, in the view of the sub-advisor, have a strategic connection to the electric power system, including generation and transmission, or that contribute to making that system safer, cleaner, more reliable, or lower in cost.

The expansion of the eligible investment universe to include contracted developers and/or owners of nuclear energy systems reflects the fund’s broader interpretation of power solutions within the electric power sector. The fund’s principal investment strategies were revised to align with this updated philosophy and EIP’s process for selecting portfolio holdings.

Role of First Trust Advisors and Energy Income Partners

FTA is described as a federally registered investment advisor that serves as the investment advisor to FPWR. Energy Income Partners, LLC acts as the investment sub-advisor responsible for identifying Power Solutions Companies and implementing the fund’s investment process. FTA and its affiliate, First Trust Portfolios L.P. ("FTP"), are privately held and provide various investment services across vehicles such as unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separately managed accounts, as stated in the press information.

FTP is identified as a FINRA-registered broker-dealer, serving as sponsor of First Trust unit investment trusts and as a distributor of mutual fund shares and exchange-traded fund creation units. Both FTA and FTP are based in Wheaton, Illinois, according to the same source.

Fund structure and investor considerations

As an ETF, First Trust EIP Power Solutions ETF offers exposure to a portfolio of equity securities selected according to EIP’s criteria for Power Solutions Companies. The fund is part of a registered investment company structure under the First Trust Exchange-Traded Fund IV trust. The sponsor information emphasizes that investors should carefully consider the fund’s investment objective, risks, charges and expenses before investing, and that these details are described in the fund’s prospectus, shareholder reports and other regulatory filings.

The sponsor materials also note that the information provided about the fund is not intended to constitute investment advice or a recommendation for any specific person. FTA indicates that it does not act in a fiduciary capacity for individual investors under ERISA and the Internal Revenue Code, and that financial advisors are expected to evaluate investment risks independently when considering the fund for their clients.

Historical context: transition from carbon impact focus

Historically, the fund operated as the First Trust EIP Carbon Impact ETF, with a non-fundamental investment policy to invest at least 80% of its net assets in equity securities of companies identified by EIP as having or seeking to have a positive carbon impact. This policy was revised in connection with the fund’s renaming and ticker change to FPWR, with the new policy focusing instead on Power Solutions Companies as defined by the sub-advisor.

This transition represents a shift from a stated emphasis on positive carbon impact to a broader focus on companies tied to the electric power system and its safety, cleanliness, reliability and cost characteristics, as described in the sponsor’s announcement.

Disclosures and risk information

According to the sponsor’s information, the risks of investing in the First Trust EIP Power Solutions ETF are detailed in the fund’s prospectus, shareholder reports and other regulatory filings. The sponsor highlights that the press information does not constitute an offer to sell or a solicitation to buy the fund’s shares in any jurisdiction where such an offer or sale would be unlawful before registration or qualification under applicable laws.

The sponsor also notes that the fund’s daily closing price, net asset value per share and other information about the fund can be found through First Trust’s information channels. Prospective investors are encouraged to review the prospectus carefully before investing, as it contains additional information about the fund’s objectives, strategies and risks.