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 thanks to several high-quality, financially strong holdings like PepsiCo, Cisco, Honeywell, and Gilead, which benefit from robust cash flows, positive earnings sentiment, and strategic initiatives in areas like AI and product innovation. The fund is also supported by defensive consumer names such as Coca-Cola and Hershey, though some holdings like Colgate-Palmolive and PPG face challenges such as high leverage, operational or technical weaknesses, and slower growth, which modestly weigh on the rating. The main risk factor is that many top positions are large, mature companies where high valuations and slower revenue growth can limit upside and make the ETF sensitive to shifts in market sentiment toward these sectors.

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)

AUM8.44B

RegionNorth America

Expense Ratio0.52%

Beta0.55

IssuerFirst Trust

Inception DateJul 06, 2006

Dividend Yield0.98%

Asset ClassEquity

Index TrackedNASDAQ Capital Strength Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume369,335

30 Day Avg. Volume453,463

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

109.23

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 is leaning on a mix of steady U.S. blue chips rather than flashy high-growth names, with a clear tilt toward defensive consumer staples and industrial strength. Coca-Cola, PepsiCo, and Colgate-Palmolive are providing a slow-and-steady backbone, rising but not sprinting. On the industrial side, Trane Technologies, Dover, and PPG Industries have been climbing more briskly, helping drive recent gains. Linde and Lockheed Martin add an industrial and defense punch, though some valuation worries mean their momentum could cool, keeping the fund balanced rather than overheated.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
EOG	EOG Resources	2.37%	$198.14M	$68.68B	4.83%	78 Outperform
HSY	The Hershey Company	2.31%	$193.03M	$47.46B	32.76%	76 Outperform
GILD	Gilead Sciences	2.30%	$192.93M	$183.52B	28.84%	78 Outperform
LMT	Lockheed Martin	2.23%	$186.92M	$153.65B	48.79%	70 Outperform
TT	Trane Technologies	2.23%	$186.59M	$98.68B	29.90%	70 Outperform
LIN	Linde	2.22%	$186.31M	$232.48B	8.74%	66 Neutral
NOC	Northrop Grumman	2.22%	$185.56M	$107.73B	63.66%	76 Outperform
CL	Colgate-Palmolive	2.20%	$184.22M	$76.56B	4.89%	63 Neutral
JNJ	Johnson & Johnson	2.20%	$183.96M	$594.64B	49.16%	78 Outperform
PEP	PepsiCo	2.19%	$183.73M	$225.37B	6.95%	78 Outperform

FTCS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

96.13

Positive

100DMA

94.05

Positive

200DMA

92.64

Positive

Market Momentum

MACD

0.73

Positive

RSI

58.94

Neutral

STOCH

79.91

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 98.21, equal to the 50-day MA of 96.13, and equal to the 200-day MA of 92.64, indicating a bullish trend. The MACD of 0.73 indicates Positive momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 79.91 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	―	―	$8.44B	0.52%	74 Outperform
MGC	―	―	$9.40B	0.05%	74 Outperform
PRF	―	―	$9.05B	0.34%	72 Outperform
QQQI	―	―	$8.95B	0.68%	75 Outperform
QYLD	―	―	$8.31B	0.61%	75 Outperform
SPLV	―	―	$8.23B	0.25%	70 Outperform

Performance Comparison

FTCS

First Trust Capital Strength ETF

98.66

8.74

9.72%

MGC

Vanguard Mega Cap ETF

―

PRF

Invesco FTSE RAFI US 1000 ETF

―

QQQI

NEOS Nasdaq 100 High Income ETF

―

QYLD

Global X NASDAQ 100 Covered Call 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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