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AFLG - ETF AI Analysis

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AFLG

First Trust Active Factor Large Cap ETF (AFLG)

Rating:74Outperform
Price Target:
AFLG’s rating reflects a high-quality mix of large, established companies, with major positions in leaders like Alphabet, Apple, Microsoft, and Nvidia whose strong financial performance, AI and cloud investments, and generally supportive technical trends drive much of the fund’s strength. Some holdings such as Amazon and Seagate add growth potential but also introduce risks through premium valuations, leverage, and periods of technical weakness. The main risk factor is the fund’s heavy tilt toward large-cap technology and AI-related names, which can make performance more sensitive to that sector’s cycles and valuation swings.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and over the past few months, showing positive momentum.
Leading Technology Exposure
A large portion of the fund is invested in major technology companies like Nvidia, Apple, and Alphabet, many of which have shown strong performance.
Healthy Fund Size
The ETF manages a sizable pool of assets, which can support trading liquidity and ongoing fund operations.
Negative Factors
High Tech Concentration
With a heavy tilt toward the technology sector, the fund could be more sensitive to downturns in tech stocks.
U.S.-Only Focus
Almost all of the ETF’s holdings are in U.S. companies, offering little geographic diversification.
Above-Average Expense Ratio
The fund’s expense ratio is higher than many broad market index ETFs, which can slightly reduce long-term returns.

AFLG vs. SPDR S&P 500 ETF (SPY)

AFLG Summary

The First Trust Active Factor Large Cap ETF (AFLG) is an actively managed fund that focuses on large U.S. companies, with a strong tilt toward technology. Instead of tracking a fixed index, the managers pick and adjust holdings based on certain “factors” they believe can improve returns. The fund owns many well-known names such as Apple and Nvidia, and offers broad exposure to leading U.S. businesses, which can help with growth and diversification in a single investment. A key risk is that it leans heavily on tech stocks, so its price can rise and fall sharply with changes in the technology sector and overall stock market.
How much will it cost me?The First Trust Active Factor Large Cap ETF (AFLG) has an expense ratio of 3.67%, which means you’ll pay $36.70 per year for every $1,000 invested. This is significantly higher than average because it is an actively managed fund, which typically involves more research and trading compared to passively managed ETFs that track an index.
What would affect this ETF?The AFLG ETF, with significant exposure to technology and large-cap U.S. companies like Nvidia, Microsoft, and Apple, could benefit from continued innovation and growth in the tech sector, as well as a stable U.S. economy. However, it may face challenges from rising interest rates, which can pressure high-growth stocks, and potential regulatory changes affecting major tech firms. Broader economic downturns or sector-specific disruptions could also negatively impact its performance.

AFLG Top 10 Holdings

AFLG is leaning heavily into U.S. tech, with Nvidia and Apple doing most of the heavy lifting as their AI and hardware stories keep investors interested. Alphabet and Amazon, however, have been more mixed lately, adding some wobble to the fund’s otherwise tech-driven stride. Microsoft and Broadcom are steady but not sprinting, reflecting high expectations already baked into their prices. With a clear tilt toward large U.S. technology and communication names, this ETF’s fortunes are closely tied to the next chapter of the AI and cloud boom.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.68%$57.45M$5.42T19.49%
76
Outperform
Apple6.10%$45.61M$4.57T35.69%
79
Outperform
Alphabet Class A5.94%$44.42M$4.33T77.87%
85
Outperform
Microsoft3.93%$29.42M$3.71T-3.01%
79
Outperform
Broadcom2.87%$21.49M$2.04T38.99%
76
Outperform
Amazon2.46%$18.41M$2.96T25.66%
71
Outperform
Lam Research1.38%$10.36M$389.37B200.39%
77
Outperform
Cisco Systems1.08%$8.05M$478.61B73.44%
77
Outperform
Seagate Tech1.05%$7.82M$184.21B428.04%
68
Neutral
Exxon Mobil0.99%$7.42M$629.29B50.99%
74
Outperform

AFLG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
43.67
Positive
100DMA
42.59
Positive
200DMA
41.00
Positive
Market Momentum
MACD
0.47
Negative
RSI
66.86
Neutral
STOCH
84.12
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFLG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 44.24, equal to the 50-day MA of 43.67, and equal to the 200-day MA of 41.00, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 66.86 is Neutral, neither overbought nor oversold. The STOCH value of 84.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFLG.

AFLG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$752.03M0.55%
74
Outperform
$996.33M0.18%
73
Outperform
$933.14M0.75%
71
Outperform
$869.55M0.35%
75
Outperform
$868.39M0.29%
73
Outperform
$743.15M0.50%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AFLG
First Trust Active Factor Large Cap ETF
45.34
7.96
21.29%
DSPY
Tema S&P 500 Historical Weight ETF Strategy
FTQI
First Trust Hedged BuyWrite Income ETF
INFO
Harbor PanAgora Dynamic Large Cap Core ETF
NBCR
Neuberger Berman Core Equity ETF
GSPY
Gotham Enhanced 500 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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