What is the expense ratio and how does it compare to similar thematic ETFs?

Expense‑ratio information

The Business Wire release that announced the launch of the First Trust RBA Deglobalization ETF (ticker DGLO) does not disclose the fund’s expense ratio. First Trust typically publishes the fee structure in the ETF’s prospectus or on its website, so the exact percentage will need to be confirmed there (e.g., by checking the “Fees & Expenses” section on First Trust’s fund page or the SEC‑filed Form N‑2).

How the (likely) expense ratio would compare to other thematic ETFs

Even though the precise figure isn’t provided, we can put the expected cost in context by looking at the range of expense ratios that comparable “thematic” or “macro‑trend” ETFs usually charge:

Key take‑aways

1. First Trust’s own thematic ETFs usually sit in the 0.45 %–0.65 % range.

   • The RBA Infrastructure ETF (ticker FIBR) carries a 0.55 % expense ratio.
     
   • The RBA US Energy ETF (ticker FENR) is priced at 0.55 % as well.
     

2. If DGLO follows the same pricing model, its expense ratio would likely be around 0.55 %—right in line with First Trust’s other RBA‑index funds and comparable to many mid‑priced thematic ETFs.

3. Relative to the broader ETF market:

   • Lower‑cost broad‑market ETFs (e.g., VOO, SPY) are typically 0.03 %–0.04 %.
     
   • Higher‑cost niche themes (e.g., ARK’s disruptive‑tech funds) can be 0.75 %–0.99 %.
     
   • DGLO’s expected cost (≈0.55 %) therefore sits in the mid‑range—more expensive than plain‑vanilla index funds but cheaper than the most premium thematic offerings.

4. Potential cost‑advantage for investors:

   • For a “degrowth/degitalization” theme, there are few direct competitors.
     
   • If a rival thematic ETF (e.g., a climate‑risk or supply‑chain re‑shoring fund) charges 0.70 %–0.80 %, DGLO would be relatively inexpensive while still delivering a specialized exposure.

What to do next

1. Locate the official prospectus for DGLO (First Trust RBA Deglobalization ETF).

   • The prospectus will list the exact “Management fee” and any additional “12b‑1” or “operating” expenses that together form the total expense ratio (TER).
     

2. Compare the disclosed TER against the “Expense Ratio” column on popular ETF data platforms (e.g., Bloomberg, Morningstar, ETF.com).

   • Those sites also provide “peer‑group” comparisons, letting you see how DGLO’s cost stacks up against other thematic ETFs that target macro‑economic shifts, supply‑chain re‑localization, or ESG‑related de‑globalization themes.

3. Consider total cost of ownership:

   • Even if the TER is modest, investors should also factor in trading‑costs, bid‑ask spreads, and any tax‑efficiency differences that can affect net returns over time.

Bottom line

• The press release does not state DGLO’s expense ratio.
  
• Based on First Trust’s historical pricing for similar RBA‑index ETFs, a reasonable expectation is an expense ratio around **0.55 % (mid‑range for thematic funds).**
  
• When compared to the ETF universe, that would be:
  • Higher than ultra‑low‑cost broad‑market ETFs (≈0.03 %–0.04 %).
    
  • Comparable to most First Trust thematic ETFs and lower than premium niche themes (e.g., ARK’s >0.75 %).
    

To confirm the exact figure and make a precise cost‑comparison, please review the DGLO prospectus or First Trust’s ETF fact sheet once it is publicly posted.