FTCS - ETF AI Analysis

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First Trust Capital Strength ETF (FTCS)

Rating:74Outperform

Price Target:―

FTCS, the First Trust Capital Strength ETF, earns a solid overall rating driven by high-quality companies with strong financial performance and positive growth outlooks. Key holdings like Ross Stores, Monster Beverage, and TJX contribute positively through robust sales growth, effective cash management, and bullish technical trends, although several names such as Expeditors International and Monster trade at rich valuations that call for some caution. The main risk factor is that many top holdings show signs of being overbought or slightly overvalued, which could increase volatility if market sentiment shifts.

Positive Factors

Broad Sector Mix

The fund spreads its investments across several sectors like financials, industrials, consumer defensive, technology, and health care, which helps reduce reliance on any single part of the market.

Strong Top Holdings Performance

Many of the largest positions, including companies like Monster Beverage, Snap-on, PPG Industries, and Costco, have shown strong gains so far this year, supporting the ETF’s overall results.

Large Asset Base

The ETF manages a sizable pool of assets, which can improve trading liquidity and make it easier for investors to buy and sell shares.

Negative Factors

High U.S. Concentration

Almost all of the fund’s holdings are in U.S. companies, offering little geographic diversification if the U.S. market struggles.

Moderately High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

Some Lagging Top Holdings

A few key positions, such as Arch Capital Group and Trane Technologies, have shown weak performance this year, which can drag on the fund’s overall returns.

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

AUM8.25B

RegionNorth America

Expense Ratio0.52%

Beta0.56

IssuerFirst Trust

Inception DateJul 06, 2006

Dividend Yield1%

Asset ClassEquity

Index TrackedNASDAQ Capital Strength Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume441,186

30 Day Avg. Volume474,919

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

106.66

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) tracks the NASDAQ Capital Strength Index, focusing on large U.S. companies with strong finances and steady earnings. It owns well-known names like Coca-Cola and Costco, along with other solid businesses across financials, industrials, consumer, and tech sectors. Someone might invest in FTCS to get diversified exposure to strong, established companies that aim for more stable long-term growth rather than big short-term swings. A key risk is that it still holds stocks, so its value can go up and down with the overall stock market.

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

FTCS leans into sturdy, U.S.-based blue chips, with consumer names quietly steering the ship. Costco has been the star of the show lately, powering higher and giving the fund a solid tailwind, while Monster Beverage and Coca-Cola add steady, defensive strength rather than fireworks. Industrial and materials picks like Snap-on and PPG are also rising, helping broaden the leadership beyond retail. On the flip side, Arch Capital and Trane Technologies have been lagging, acting as small speed bumps in an otherwise steadily climbing portfolio.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
GILD	Gilead Sciences	2.24%	$184.07M	$174.90B	47.47%	78 Outperform
EOG	EOG Resources	2.11%	$173.46M	$58.92B	-14.75%	78 Outperform
CSCO	Cisco Systems	2.10%	$172.81M	$310.87B	32.59%	77 Outperform
MSFT	Microsoft	2.10%	$172.35M	$3.57T	8.88%	79 Outperform
JNJ	Johnson & Johnson	2.09%	$171.37M	$540.74B	50.66%	78 Outperform
ACGL	Arch Capital Group	2.08%	$170.95M	$33.89B	-0.38%	79 Outperform
KO	Coca-Cola	2.08%	$170.68M	$316.38B	17.06%	75 Outperform
MNST	Monster Beverage	2.07%	$170.34M	$79.54B	64.81%	80 Outperform
PPG	PPG Industries	2.07%	$170.14M	$24.75B	-6.88%	67 Neutral
NOC	Northrop Grumman	2.07%	$170.04M	$96.87B	43.11%	76 Outperform

FTCS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

93.26

Positive

100DMA

92.79

Positive

200DMA

91.40

Positive

Market Momentum

MACD

0.86

Negative

RSI

61.02

Neutral

STOCH

77.31

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTCS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 94.97, equal to the 50-day MA of 93.26, and equal to the 200-day MA of 91.40, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTCS.

FTCS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FTCS	―	―	$8.25B	0.52%	―
MGC	―	―	$9.88B	0.07%	―
PRF	―	―	$8.84B	0.34%	―
QYLD	―	―	$8.33B	0.61%	―
QQQI	―	―	$8.31B	0.68%	―
RWL	―	―	$7.70B	0.39%	―

Performance Comparison

FTCS

First Trust Capital Strength ETF

95.93

5.84

6.48%

MGC

Vanguard Mega Cap ETF

―

PRF

Invesco FTSE RAFI US 1000 ETF

―

QYLD

Global X NASDAQ 100 Covered Call ETF

―

QQQI

NEOS Nasdaq 100 High Income ETF

―

RWL

Invesco S&P 500 Revenue 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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