ETF Evaluator: First Trust Global Wind Energy ETF (FAN) Follow This ETF

First Trust Global Wind Energy ETF Overview

First Trust Global Wind Energy ETF (FAN) is a passively managed Sector Equity Miscellaneous Sector exchange-traded fund (ETF). First Trust launched the ETF in 2008.

The investment seeks investment results that correspond generally to the price and yield of an equity index called the ISE Clean Edge Global Wind Energy TM Index. The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the index. The index provides a benchmark for investors interested in tracking public companies throughout the world that are active in the wind energy industry. In order to be eligible for inclusion in the index, a security must be issued by a company that is actively engaged in some aspect of the wind energy industry. The fund is non-diversified.

About First Trust Global Wind Energy ETF (FAN)

There are 7 members of the management team with an average tenure of 15.14 years: Daniel Lindquist (2008), Jon Erickson (2008), David McGarel (2008), Stan Ueland (2008), Chris Peterson (2016), Erik Russo (2021) and Roger Testin (2008). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and MSCI World NR USD index with a weighting of 100%. First Trust Global Wind Energy ETF has 51 securities in its portfolio. The top 10 holdings constitute 53.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is considered to have an ESG focus with its investment selection and management.

First Trust Global Wind Energy ETF is part of the Equity global asset class and is within the Sector Equity ETF group. First Trust Global Wind Energy ETF has 84.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 15.1% There is 84.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Global Wind Energy ETF has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $304 million in total assets, which is below the $351 million average for the Miscellaneous Sector category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FAN Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Global Wind Energy ETF expense ratio is above average compared to funds in the Miscellaneous Sector category. First Trust Global Wind Energy ETF has an expense ratio of 0.60%, which is 17% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Global Wind Energy ETF has a portfolio turnover rate of 34%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 45% for the Miscellaneous Sector category.

Recently, in the month of June 2026, First Trust Global Wind Energy ETF returned -4.4%, which earned it a grade of B, as the Miscellaneous Sector category had an average return of -6.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust Global Wind Energy ETF has a trailing yield of 0.94%, which is below the 1.02% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust Global Wind Energy ETF Grades

Year to date, the ETF has returned 21.8%, 8.0 percentage points better than the category, which translates into a grade of B. The fund has returned 39.4% over the past year (grade of C), 14.1% over the past three years (grade of B) and 4.6% per year over the past five years (grade of A) and 9.5% per year over the past 10 years (grade of C).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about First Trust Global Wind Energy ETF, including its riskiness, submit your email to unlock the rest of the article.