First Trust TCW ESG Premier Equity ETF (NYSE Arca: EPRE) is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing primarily in U.S. equity securities of large capitalization companies meeting specific environmental, social, and governance (ESG) criteria, as determined by its sub-advisor; the fund allocates at least 80% of its net assets to such ESG-compliant equities, including initial public offerings and special purpose acquisition companies, with a concentrated portfolio typically featuring 21 holdings where the top 10 account for approximately 70% of assets; sector exposures include technology services (25%), electronic technology (19%), commercial services (11%), consumer non-durables (10%), and finance (9%), with over 99% of holdings in North America, predominantly the United States (82%).
Launched on May 26, 2021 by First Trust Advisors L.P., a leading ETF provider founded in 1991 and headquartered in Wheaton, Illinois, the fund was initially sub-advised by TCW Investment Management Company LLC, utilizing TCW's qualitative and quantitative ESG screening alongside fundamental analysis to select undervalued securities generating consistent free cash flow.
In a significant recent development, First Trust terminated its sub-advisory agreement with TCW across multiple ETFs, including EPRE, effective May 9, 2025; the board approved the transition to Smith Capital Investors, LLC as the new sub-advisor under an interim agreement, followed by shareholder approval of a new long-term sub-advisory agreement and a manager-of-managers structure in July 2025, enabling future sub-advisor changes subject to board oversight without additional shareholder votes.
The fund targets investors seeking ESG-aligned equity exposure with active management for potential outperformance, operating within the U.S. large-cap growth and ESG segments of the broader ETF market.