FTXH - ETF AI Analysis

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First Trust Nasdaq Pharmaceuticals ETF (FTXH)

Rating:72Outperform

Price Target:―

FTXH, the First Trust Nasdaq Pharmaceuticals ETF, has a solid overall rating driven by large positions in strong, diversified pharma leaders like Merck and Johnson & Johnson, which benefit from robust financial performance, positive earnings calls, and strategic growth initiatives. Other key holdings such as Bristol-Myers Squibb, Pfizer, and Regeneron further support the fund with healthy pipelines and generally favorable outlooks, though some face debt, valuation, and product-specific challenges. Weaker names like Viatris and financially stretched holdings such as AbbVie and Cardinal Health slightly weigh on the rating, and the main risk is the fund’s concentration in the pharmaceuticals sector, which can be sensitive to regulation, patent cycles, and drug-specific news.

Positive Factors

Leading Pharma Blue-Chip Holdings

The ETF’s largest positions include well-known, financially strong pharmaceutical companies that have generally shown steady to strong performance this year.

Recent Performance Momentum

The fund has delivered solid gains over the last three months, indicating improving short-term momentum despite a slightly weak recent one-month period.

Focused Exposure to U.S. Health Care

Almost all assets are invested in U.S. health care stocks, giving targeted exposure to a defensive sector that can be more resilient in economic slowdowns.

Negative Factors

High Sector Concentration

With nearly all assets in the health care sector, the ETF is heavily exposed to industry-specific risks such as regulatory changes and drug pricing pressures.

Mixed Performance Among Top Holdings

Several major positions have shown weak or negative performance this year, which can drag on overall returns if those stocks do not recover.

Above-Average Expense Ratio

The fund’s management fee is relatively high for an ETF, which can slowly reduce investors’ net returns over time.

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

AUM23.75M

RegionNorth America

Expense Ratio0.60%

Beta0.56

IssuerFirst Trust

Inception DateSep 20, 2016

Dividend Yield1.35%

Asset ClassEquity

Index TrackedNasdaq US Smart Pharmaceuticals Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume3,532

30 Day Avg. Volume4,785

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

38.47

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering50

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FTXH Summary

FTXH is the First Trust Nasdaq Pharmaceuticals ETF, which follows the Nasdaq US Smart Pharmaceuticals Index. It invests mainly in U.S. drugmakers and health care companies, from large, well-known names like Merck and Johnson & Johnson to other firms focused on developing new medicines. Someone might consider this ETF if they want targeted exposure to the potential growth of the pharmaceutical industry and prefer a basket of stocks instead of picking individual companies. A key risk is that it is heavily focused on one sector, so its price can swing with changes in drug approvals, regulation, and health care policy.

How much will it cost me?The First Trust Nasdaq Pharmaceuticals ETF (FTXH) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a specialized sector, which typically involves more research and management costs.

What would affect this ETF?The FTXH ETF could benefit from advancements in pharmaceutical research, including breakthroughs in drug development and personalized medicine, as well as increased demand for innovative health care solutions in the U.S. However, it may face challenges from regulatory changes, patent expirations, or economic downturns that could impact the profitability of its top holdings like AbbVie, Johnson & Johnson, and Merck.

FTXH Top 10 Holdings

FTXH is a pure play on U.S. big pharma, with heavyweights Merck and Johnson & Johnson doing much of the lifting as their shares keep grinding higher on solid results and steady pipelines. Eli Lilly has been a powerful engine over the past few months, adding extra thrust to the fund’s performance. On the flip side, AbbVie and Biogen have been losing steam, tempering some of those gains. Overall, this ETF is tightly focused on large U.S. drugmakers, so its fortunes rise and fall with the pharmaceutical cycle.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MRK	Merck & Company	7.95%	$1.91M	$273.69B	13.61%	80 Outperform
JNJ	Johnson & Johnson	7.68%	$1.85M	$547.51B	51.94%	78 Outperform
BMY	Bristol-Myers Squibb	6.99%	$1.68M	$112.07B	-6.77%	78 Outperform
PFE	Pfizer	6.35%	$1.53M	$150.33B	1.76%	74 Outperform
ABBV	AbbVie	6.33%	$1.52M	$394.14B	18.67%	66 Neutral
CAH	Cardinal Health	4.34%	$1.04M	$51.05B	74.68%	66 Neutral
LLY	Eli Lilly & Co	4.20%	$1.01M	$980.50B	28.84%	72 Outperform
BIIB	Biogen	3.92%	$943.80K	$26.39B	25.82%	74 Outperform
REGN	Regeneron	3.83%	$922.63K	$77.93B	13.22%	78 Outperform
VTRS	Viatris	3.83%	$920.43K	$15.08B	23.91%	60 Neutral

FTXH Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

33.05

Positive

100DMA

31.11

Positive

200DMA

28.49

Positive

Market Momentum

MACD

0.32

Negative

RSI

63.51

Neutral

STOCH

84.71

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTXH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 33.66, equal to the 50-day MA of 33.05, and equal to the 200-day MA of 28.49, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 84.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTXH.

FTXH Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FTXH	―	―	$23.75M	0.60%	―
XHS	―	―	$95.74M	0.35%	―
LFSC	―	―	$89.38M	0.54%	―
IBBQ	―	―	$73.77M	0.19%	―
BBP	―	―	$45.47M	0.79%	―
BBC	―	―	$37.46M	0.79%	―

Performance Comparison

FTXH

First Trust Nasdaq Pharmaceuticals ETF

34.39

7.23

26.62%

XHS

SPDR S&P Health Care Services ETF

―

LFSC

F/M Emerald Life Sciences Innovation ETF

―

IBBQ

Invesco Nasdaq Biotechnology ETF

―

BBP

Virtus LifeSci Biotech Products ETF

―

BBC

Virtus LifeSci Biotech Clinical Trials 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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