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FCTR - ETF AI Analysis

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FCTR

First Trust Lunt U.S. Factor Rotation ETF (FCTR)

Rating:68Neutral
Price Target:
FCTR, the First Trust Lunt U.S. Factor Rotation ETF, earns a solid overall rating, helped by strong contributors like Micron and Western Digital, which benefit from robust revenue growth, improving financial performance, and key roles in AI-related demand. However, weaker holdings such as LyondellBasell and Centene, which face profitability challenges, high leverage, and bearish or mixed technical signals, weigh on the fund’s rating. A key risk for FCTR is its exposure to several companies with high valuations and leverage, which could increase volatility if market conditions worsen.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many different sectors, which can help reduce the impact if any one industry struggles.
Several Strong Top Holdings
Some of the largest positions, such as ON Semiconductor and Bunge Global, have shown strong recent performance that supports the ETF’s returns.
Positive Year-to-Date Performance
The ETF has delivered a modest gain so far this year, showing it has held up reasonably well in the current market.
Negative Factors
High Expense Ratio
The fund’s fees are relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Concentrated in U.S. Stocks
With almost all assets invested in U.S. companies, the fund offers little geographic diversification and is heavily tied to the U.S. market.
Mixed Performance Among Top Holdings
Several key holdings, including Humana, International Paper, and Axon Enterprise, have shown weak recent performance, which can drag on the fund’s overall results.

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

FCTR Summary

The First Trust Lunt U.S. Factor Rotation ETF (FCTR) is a fund that invests in large U.S. companies and follows the Lunt Capital Large Cap Factor Rotation Total Return Index. It shifts its focus among different styles, like value and momentum, aiming to pick the types of stocks that are currently working best. The fund holds well-known names such as Humana and Allstate, and spreads money across many sectors, which can help with diversification and long-term growth potential. A key risk is that its strategy can still go up and down with the overall stock market.
How much will it cost me?The First Trust Lunt U.S. Factor Rotation ETF (Ticker: FCTR) has an expense ratio of 0.65%, which means you’ll pay $6.50 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, using a dynamic strategy to rotate among investment factors to potentially enhance returns.
What would affect this ETF?The First Trust Lunt U.S. Factor Rotation ETF (FCTR) could benefit from strong performance in the technology sector, which makes up a significant portion of its holdings, especially if innovation and growth trends continue in this space. However, economic uncertainty, rising interest rates, or regulatory changes affecting large-cap companies in the U.S. could negatively impact its performance, particularly for top holdings like Tesla and Intel. The ETF's dynamic factor rotation strategy may help mitigate risks by adapting to changing market conditions.

FCTR Top 10 Holdings

FCTR is leaning hard into U.S. tech and industrial innovators, with names like Bloom Energy, Micron, and Seagate doing much of the heavy lifting as their shares have been on a solid upswing. Western Digital and Intel are also rising, riding the wave of AI and data demand, giving the fund a clear tilt toward chips, storage, and next-gen infrastructure. On the flip side, LyondellBasell and Teradyne look a bit tired, lagging the pack and slightly dulling returns. Overall, this is a U.S.-centric, tech-heavy story with factor rotation as the steering wheel.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Centene3.27%$1.86M$31.38B18.06%
58
Neutral
Humana2.16%$1.23M$44.27B61.19%
69
Neutral
Super Micro Computer1.85%$1.05M$19.23B-26.71%
58
Neutral
Axon Enterprise1.63%$924.98K$35.96B-43.41%
58
Neutral
Bloom Energy1.59%$905.05K$70.79B1085.51%
62
Neutral
ON Semiconductor1.56%$885.85K$45.45B128.91%
73
Outperform
Flutter Entertainment PLC1.45%$821.80K£14.38B-59.06%
54
Neutral
Credo Technology Group Holding Ltd1.42%$806.35K$48.83B241.28%
77
Outperform
Strategy1.39%$788.08K$42.11B-67.62%
55
Neutral
Intel1.37%$779.81K$587.84B518.52%
64
Neutral

FCTR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
38.37
Positive
100DMA
37.45
Positive
200DMA
36.45
Positive
Market Momentum
MACD
0.63
Positive
RSI
61.87
Neutral
STOCH
65.14
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FCTR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 39.80, equal to the 50-day MA of 38.37, and equal to the 200-day MA of 36.45, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCTR.

FCTR Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$56.27M0.65%
68
Neutral
$97.98M0.49%
71
Outperform
$97.76M0.60%
71
Outperform
$96.74M0.45%
69
Neutral
$89.95M0.35%
74
Outperform
$87.90M0.80%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCTR
First Trust Lunt U.S. Factor Rotation ETF
41.06
8.23
25.07%
JHDG
John Hancock Hedged Equity ETF
ALTL
Pacer Lunt Large Cap Alternator ETF
ACEP
ARS Core Equity Portfolio ETF
JOYT
JPMorgan Equity and Options Total Return ETF
FCUS
Pinnacle Focused Opportunities 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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