MA - Get Report), Qualcomm ( QCOM - Get Report) and Nike ( NKE - Get Report). Interestingly, defense contractors make up 8% of the fund, which could smooth out the ride for FTCS if the situation in Syria escalates into a situation that is bad for the markets in general but good for defense stocks. First Trust has said that it converted its more traditional large-cap value fund into the Capital Strength fund after realizing that many investors are concerned about how fast the market has gone up in recent years and worried that the fundamentals do not necessarily support the big rally.
Although First Trust hasn't said as much, it's also possible that it made the conversion after deciding that the original fund's lack of assets -- $37 million -- indicated the market didn't need another basic large-cap value fund. Although the capital strength process yields a value tilt, it is not a carbon copy of other large-cap value funds offered by competitors. The iShares S&P 500 Value ETF ( IVE - Get Report), the Power Shares Dynamic Large Cap Value Portfolio ( PWV - Get Report) and the Vanguard Mega Cap Value ETF ( MGV - Get Report) all have weightings greater than 20% in the financial sector compared to just 8% for FTCS. The other funds have much less exposure to the industrial sector than FTCS. Follow @randomroger This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.