Bank Hapoalim Initiates $14.7 Million Position in First Trust Capital Strength ETF

What happened

According to a SEC filing dated February 17, 2026, BANK Hapoalim BM established a new position in First Trust Capital Strength ETF (NASDAQ:FTCS), acquiring 159,000 shares. The fund’s quarter-end position in FTCS was valued at $14.71 million, capturing both the trade and stock price changes over the period.

What else to know

This marks a new entry for FTCS, now representing 1.28% of BANK Hapoalim BM’s 13F reportable AUM

Top five holdings after the filing:

• NASDAQ:TSLA: $306.69 million (26.7% of AUM)
• NYSEMKT:VOO: $127.13 million (11.1% of AUM)
• NASDAQ:QQQ: $76.22 million (6.6% of AUM)
• NYSEMKT:LQD: $59.05 million (5.1% of AUM)
• NYSEMKT:SPY: $39.40 million (3.4% of AUM)

As of February 13, 2026, FTCS shares were priced at $97.69, up 9.2% over the past year, underperforming the S&P 500 by 2.6 percentage points.

ETF overview

ETF snapshot

First Trust Capital Strength ETF (FTCS) is a large-scale equity ETF with a market capitalization of $8.28 billion, designed to deliver exposure to financially robust U.S. companies. The fund's disciplined approach emphasizes balance sheet strength and consistent performance, appealing to investors seeking stability within their equity allocation.

The ETF’s Investment strategy focuses on tracking an index of well-capitalized companies with strong market positions, aiming to provide stability and performance over time.

Its portfolio is primarily composed of U.S. common stocks and REITs selected for capital strength, with at least 90% of assets allocated to index constituents.

What this transaction means for investors

Equity investors often seek ways to remain invested in the stock market while limiting exposure to companies with weaker balance sheets. The First Trust Capital Strength ETF takes that approach by tracking an index that selects U.S. companies based on measures such as return on equity, return on assets, and cash-flow strength. By emphasizing firms with stronger financial positions, the strategy seeks to maintain equity exposure while reducing exposure to companies that may be more vulnerable during economic downturns.

In contrast to traditional index funds that weight companies purely by market capitalization, FTCS follows an index that screens for financial strength before constructing the portfolio. Companies with stronger profitability and balance sheets make up a larger share of the index, giving the fund a tilt toward what investors often describe as the “quality” factor. The portfolio is also weighted using a volatility-adjusted approach, which can further emphasize companies with more stable operating profiles.

For investors, the key question is whether companies with stronger balance sheets and consistent profitability will continue to hold up better across market cycles. If those characteristics remain valuable during periods of economic uncertainty or market volatility, funds such as FTCS may appeal to investors seeking equity exposure with an added emphasis on financial durability rather than pure market momentum.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.