FTCE - ETF AI Analysis

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First Trust New Constructs Core Earnings Leaders ETF (FTCE)

Rating:70Neutral

Price Target:―

FTCE, the First Trust New Constructs Core Earnings Leaders ETF, has a solid overall rating driven mainly by high-quality leaders like Nvidia, Meta, IBM, KLA, and Qualcomm, which all show strong financial performance, positive earnings commentary, and strategic positioning in areas like AI and advanced technology. These strengths are partly offset by holdings such as Starbucks and Booking Holdings, where high debt, weaker profitability trends, and bearish technical signals introduce some caution. A key risk factor is the fund’s meaningful exposure to richly valued, tech-focused names, which could be more sensitive to market swings and regulatory or geopolitical developments.

Positive Factors

Broad Sector Diversification

The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.

Mix of Strong and Stable Top Holdings

Several of the largest positions, such as Starbucks, KLA, and Accenture, have shown strong or steady performance, helping support the ETF’s overall returns.

Recent Short-Term Momentum

The ETF has delivered positive returns over the past one and three months, suggesting improving short-term performance.

Negative Factors

High Expense Ratio

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

Heavy U.S. Concentration

Almost all of the ETF’s assets are invested in U.S. companies, offering little geographic diversification if the U.S. market weakens.

Several Weak Top Holdings

Some major positions, including Meta, Nvidia, Booking Holdings, and JPMorgan, have shown weak or negative performance this year, which can drag on the fund’s results.

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

AUM61.62M

RegionNorth America

Expense Ratio0.60%

Beta0.94

IssuerFirst Trust

Inception DateOct 02, 2024

Dividend Yield0.96%

Asset ClassEquity

Index TrackedBloomberg New Constructs Core Earnings Leaders Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume8,342

30 Day Avg. Volume15,694

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

30.02

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering101

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FTCE Summary

FTCE is an ETF that follows the Bloomberg New Constructs Core Earnings Leaders Index, focusing on U.S. companies with strong, reliable earnings across many sectors. It holds well-known names like Nvidia, Meta Platforms, Starbucks, and JPMorgan Chase, giving investors broad exposure to the overall stock market while tilting toward financially solid businesses. Someone might invest in FTCE to seek long-term growth and diversification in one fund, instead of picking individual stocks. A key risk is that it is heavily invested in U.S. stocks and tech-related companies, so its value can rise and fall sharply with the stock market and technology sector.

How much will it cost me?The First Trust New Constructs Core Earnings Leaders ETF (FTCE) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on selecting companies with strong core earnings using advanced analytical techniques.

What would affect this ETF?FTCE's focus on companies with strong core earnings and its significant exposure to the technology sector could benefit from continued innovation and growth in tech, especially if consumer demand for advanced technologies remains high. However, the ETF's reliance on U.S.-based companies makes it vulnerable to domestic economic challenges, such as rising interest rates or regulatory changes affecting key sectors like technology and financials. Additionally, any downturn in global economic conditions or disruptions in supply chains could negatively impact its top holdings, including major players like Apple and Nvidia.

FTCE Top 10 Holdings

FTCE is leaning heavily into U.S. tech and consumer names, with Nvidia and KLA doing much of the heavy lifting as their AI and chip stories keep the momentum rising. Starbucks and General Motors add a consumer and industrial twist, both showing improving trends that help support the fund. On the flip side, Eli Lilly, Qualcomm, and especially Booking Holdings have been losing steam lately, acting as a drag. Overall, this is a U.S.-centric portfolio with a clear tilt toward technology strength, balanced by select financial and consumer leaders.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SBUX	Starbucks	4.68%	$2.92M	$109.95B	-14.33%	56 Neutral
META	Meta Platforms	4.50%	$2.81M	$1.62T	-0.19%	76 Outperform
NVDA	Nvidia	4.48%	$2.80M	$4.69T	53.88%	76 Outperform
LLY	Eli Lilly & Co	4.30%	$2.68M	$983.12B	12.91%	72 Outperform
IBM	International Business Machines	3.69%	$2.31M	$214.35B	-4.43%	79 Outperform
KLAC	KLA	3.57%	$2.23M	$197.49B	118.02%	77 Outperform
JPM	JPMorgan Chase	3.31%	$2.07M	$801.83B	18.17%	72 Outperform
BKNG	Booking Holdings	3.25%	$2.03M	$128.86B	-13.58%	63 Neutral
GM	General Motors	3.17%	$1.98M	$73.48B	69.62%	73 Outperform
QCOM	Qualcomm	2.79%	$1.74M	$154.48B	-5.73%	80 Outperform

FTCE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

25.14

Negative

100DMA

24.83

Positive

200DMA

23.52

Positive

Market Momentum

MACD

-0.13

Positive

RSI

47.28

Neutral

STOCH

30.33

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTCE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 25.05, equal to the 50-day MA of 25.14, and equal to the 200-day MA of 23.52, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTCE.

FTCE Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FTCE	―	―	$61.62M	0.60%	70 Neutral
SOVF	―	―	$96.53M	0.75%	69 Neutral
STNC	―	―	$94.05M	0.85%	71 Outperform
FFTY	―	―	$91.47M	0.80%	70 Outperform
TMFE	―	―	$90.61M	0.50%	74 Outperform
BUZZ	―	―	$89.22M	0.76%	66 Neutral

Performance Comparison

FTCE

First Trust New Constructs Core Earnings Leaders ETF

24.97

4.25

20.51%

SOVF

Sovereign's Capital Flourish Fund

―

STNC

Stance Equity ESG Large Cap Core ETF

―

FFTY

Innovator IBD 50 ETF

―

TMFE

Motley Fool Capital Efficiency 100 Index ETF

―

BUZZ

VanEck Social Sentiment 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: ―

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