FCFY - ETF AI Analysis

Top Page

First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)

Rating:72Outperform

Price Target:―

FCFY’s rating suggests it is a solid-quality ETF, supported by strong holdings like Qualcomm and Accenture, which benefit from robust financial performance, positive earnings calls, and growth in AI and advanced technology services. Cognizant and NetApp also add strength through healthy earnings and strategic focus on high-margin, AI-related segments, while weaker names like HP, with operational and balance sheet concerns, slightly weigh on the overall picture. The main risk is that several key holdings show signs of potential overvaluation or technical caution, which could increase volatility even though the fund is diversified across companies.

Positive Factors

Diversified Across Many Sectors

The fund spreads its investments across a wide range of industries, which can help reduce the impact if any one sector struggles.

Focus on Free Cash Flow

By targeting companies with strong free cash flow, the ETF emphasizes businesses that generate solid cash from their operations, which can support dividends, buybacks, and reinvestment.

Meaningful Technology Exposure

A large allocation to technology companies gives investors access to a key growth area of the market.

Negative Factors

Higher Expense Ratio

The fund’s fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.

Recent Weak Performance

The ETF has shown slightly negative returns over the past month, three months, and year to date, indicating recent performance has been soft.

Heavy U.S. Concentration

With almost all assets in U.S. stocks, the fund offers little geographic diversification and is highly tied to the U.S. market’s fortunes.

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

AUM1.27M

RegionNorth America

Expense Ratio0.60%

Beta0.97

IssuerFirst Trust

Inception DateAug 23, 2023

Dividend Yield1.62%

Asset ClassEquity

Index TrackedS&P 500 Sector-Neutral FCF Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume192

30 Day Avg. Volume468

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

30.59

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering101

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FCFY Summary

The First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) tracks an index of S&P 500 companies that generate strong free cash flow, meaning they have extra cash after running their businesses. It focuses on large, established U.S. companies across many sectors, with a big tilt toward technology and other major industries. Well-known holdings include Accenture and Qualcomm. Someone might invest in this ETF to seek long-term growth from financially solid companies while staying diversified across the U.S. market. A key risk is that it can still rise and fall with the overall stock market, especially tech-heavy periods.

How much will it cost me?The expense ratio for the First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than the average for ETFs because it is actively managed, focusing on selecting companies with strong free cash flow rather than simply tracking an index.

What would affect this ETF?The FCFY ETF, with its strong focus on large-cap U.S. companies and significant exposure to the technology sector, could benefit from continued innovation and growth in tech, as well as stable economic conditions that support consumer spending and corporate profitability. However, it may face challenges from rising interest rates, which can negatively impact growth-oriented sectors like technology, and potential regulatory changes targeting large-cap firms or specific industries. Broader economic downturns or reduced corporate free cash flow generation could also pose risks to the fund's performance.

FCFY Top 10 Holdings

This ETF leans heavily on U.S. tech and communication names, with ON Semiconductor and Comcast doing much of the heavy lifting lately as their shares keep climbing. Omnicom is also pulling its weight with steady gains. On the flip side, consulting and IT services are losing steam: Accenture and Cognizant have been lagging, while HP and Synchrony Financial add to the drag. With most of the top holdings tied to U.S. technology, media, and financials, the fund’s story is very much about how these cash-rich American giants navigate the current cycle.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SWKS	Skyworks Solutions	3.38%	$42.72K	$8.30B	-17.84%	70 Outperform
ON	ON Semiconductor	2.75%	$34.79K	$22.73B	36.87%	73 Outperform
FOXA	Fox	2.52%	$31.81K	$23.38B	13.13%	77 Outperform
CTSH	Cognizant	2.42%	$30.53K	$29.26B	-21.90%	79 Outperform
HPQ	HP	2.36%	$29.85K	$17.33B	-32.10%	61 Neutral
OMC	Omnicom Group	2.26%	$28.52K	$24.18B	-1.98%	73 Outperform
NTAP	NetApp	2.23%	$28.21K	$19.13B	7.63%	76 Outperform
ACN	Accenture	2.10%	$26.47K	$120.63B	-38.17%	79 Outperform
CMCSA	Comcast	2.09%	$26.36K	$108.51B	-13.08%	74 Outperform
IT	Gartner	1.98%	$25.05K	$11.31B	-64.48%	67 Neutral

FCFY Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

27.09

Negative

100DMA

27.03

Negative

200DMA

26.29

Negative

Market Momentum

MACD

-0.43

Positive

RSI

28.61

Positive

STOCH

0.08

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FCFY, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 26.39, equal to the 50-day MA of 27.09, and equal to the 200-day MA of 26.29, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 28.61 is Positive, neither overbought nor oversold. The STOCH value of 0.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCFY.

FCFY Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FCFY	―	―	$1.27M	0.60%	72 Outperform
UPSD	―	―	$99.70M	0.79%	70 Neutral
ALTL	―	―	$97.79M	0.60%	71 Outperform
BCUS	―	―	$93.98M	0.70%	73 Outperform
LVDS	―	―	$92.40M	0.30%	72 Outperform
RWLC	―	―	$86.81M	0.32%	73 Outperform

Performance Comparison

FCFY

First Trust S&P 500 Diversified Free Cash Flow ETF

25.24

2.14

9.26%

UPSD

Aptus Large Cap Upside ETF

―

ALTL

Pacer Lunt Large Cap Alternator ETF

―

BCUS

Bancreek U.S. Large Cap ETF

―

LVDS

JPMorgan Fundamental Data Science Large Value ETF

―

RWLC

Rayliant Quantitative Developed Market Equity 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.

Disclaimer

This 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: ―

Table of Contents