FTCS - ETF AI Analysis

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First Trust Capital Strength ETF (FTCS)

Rating:73Outperform

Price Target:―

The First Trust Capital Strength ETF (FTCS) demonstrates solid overall quality, driven by strong contributions from holdings like Dover and Cognizant. Dover benefits from robust financial performance, positive earnings sentiment, and strategic corporate events, while Cognizant excels with AI-driven growth and strong financial health. However, weaker holdings such as 3M, which faces challenges with high leverage and declining profitability, slightly temper the ETF's rating. A key risk factor is the potential overvaluation of several holdings, which may limit short-term upside.

Positive Factors

Strong Top Holdings

Several top holdings, such as General Dynamics and 3M, have delivered strong year-to-date performance, supporting the ETF’s overall returns.

Sector Diversification

The ETF is spread across 10 sectors, with significant exposure to Industrials, Financials, and Technology, reducing reliance on any single industry.

Solid Asset Base

With over $8 billion in assets under management, the fund benefits from strong investor interest and stability.

Negative Factors

High U.S. Concentration

The ETF is entirely focused on U.S. companies, which limits exposure to international markets and diversification.

Mixed Performance Among Holdings

Some top holdings, like Honeywell and Dover, have underperformed year-to-date, potentially dragging on overall returns.

Moderate Expense Ratio

The ETF’s expense ratio of 0.52% is higher than some low-cost alternatives, which could reduce net returns over time.

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

AUM8.16B

RegionNorth America

Expense Ratio0.52%

Beta0.56

IssuerFirst Trust

Inception DateJul 06, 2006

Dividend Yield1.21%

Asset ClassEquity

Index TrackedNASDAQ Capital Strength Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume413,796

30 Day Avg. Volume410,625

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

104.38

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering50

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FTCS Summary

The First Trust Capital Strength ETF (FTCS) is an investment fund that focuses on large, financially strong companies in the U.S., following the NASDAQ Capital Strength Index. It includes firms with solid balance sheets, steady earnings, and a history of paying dividends, making it a good choice for investors seeking stability and long-term growth. Some of its top holdings include well-known companies like Honeywell International and 3M, which are leaders in their industries. This ETF is diversified across sectors like technology, healthcare, and industrials, offering exposure to different parts of the economy. However, new investors should be aware that the fund’s performance can fluctuate with the overall market, especially since it focuses on large-cap stocks.

How much will it cost me?The First Trust Capital Strength ETF (FTCS) has an expense ratio of 0.52%, which means you’ll pay $5.20 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on selecting financially strong companies rather than tracking a broad index. Active management typically involves more research and decision-making, which increases costs.

What would affect this ETF?The First Trust Capital Strength ETF (FTCS) could benefit from stable economic growth and increased demand for financially strong companies, especially in sectors like Industrials and Technology, which are key components of the fund. However, rising interest rates or economic uncertainty could negatively impact sectors such as Financials and Consumer Cyclical, while regulatory changes or geopolitical tensions might affect its U.S.-focused holdings. Investors should monitor these factors to assess potential risks and opportunities.

FTCS Top 10 Holdings

The First Trust Capital Strength ETF (FTCS) leans heavily on industrials and financials, with names like Cummins and Expeditors International providing steady upward momentum thanks to strong cash flow and operational efficiency. Health care giant Johnson & Johnson is another bright spot, benefiting from bullish technical trends and successful product launches. On the flip side, Dover and Cognizant are lagging slightly, with valuation concerns and mixed growth tempering their performance. Overall, the fund’s U.S.-centric portfolio balances resilience with growth, though its sector concentration may amplify the impact of industry-specific headwinds.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
EXPD	Expeditors International	2.50%	$200.94M	$19.84B	21.97%	80 Outperform
CTSH	Cognizant	2.48%	$199.85M	$38.95B	1.11%	79 Outperform
CMI	Cummins	2.46%	$198.13M	$70.08B	32.42%	72 Outperform
DOV	Dover	2.31%	$186.24M	$26.23B	-5.58%	79 Outperform
CSCO	Cisco Systems	2.30%	$184.96M	$311.58B	35.40%	77 Outperform
ROST	Ross Stores	2.30%	$184.75M	$57.95B	13.64%	80 Outperform
MMM	3M	2.19%	$176.45M	$87.10B	27.22%	59 Neutral
TJX	TJX Companies	2.17%	$174.30M	$170.70B	20.82%	79 Outperform
WMT	Walmart	2.17%	$174.24M	$905.09B	21.69%	78 Outperform
CBOE	Cboe Global Markets	2.14%	$172.26M	$26.50B	24.64%	75 Outperform

FTCS Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

92.28

Negative

100DMA

92.23

Negative

200DMA

90.58

Positive

Market Momentum

MACD

0.01

Negative

RSI

46.60

Neutral

STOCH

36.88

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTCS, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 91.76, equal to the 50-day MA of 92.28, and equal to the 200-day MA of 90.58, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTCS.

FTCS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FTCS	―	―	$8.16B	0.52%	―
MGC	―	―	$9.16B	0.07%	―
PRF	―	―	$8.54B	0.34%	―
QYLD	―	―	$8.01B	0.61%	―
JQUA	―	―	$7.57B	0.12%	―
SPLV	―	―	$7.44B	0.25%	―

Performance Comparison

FTCS

First Trust Capital Strength ETF

91.52

1.46

1.62%

MGC

Vanguard Mega Cap ETF

―

PRF

Invesco FTSE RAFI US 1000 ETF

―

QYLD

Global X NASDAQ 100 Covered Call ETF

―

JQUA

JPMorgan U.S. Quality Factor ETF

―

SPLV

Invesco S&P 500 Low Volatility 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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