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FTXH - ETF AI Analysis

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FTXH

First Trust Nasdaq Pharmaceuticals ETF (FTXH)

Rating:72Outperform
Price Target:
FTXH, the First Trust Nasdaq Pharmaceuticals ETF, earns a solid overall rating driven by strong, diversified holdings in major pharmaceutical leaders like Merck, Johnson & Johnson, and Bristol-Myers Squibb, which benefit from robust financial performance, positive earnings calls, and promising drug pipelines. These strengths are partly offset by holdings such as Viatris and AbbVie, where financial stability, profitability, and valuation concerns weigh on their outlook. The main risk factor is the fund’s concentration in the pharmaceuticals sector, which can make it more sensitive to industry-specific issues like regulatory changes, patent expirations, and drug pricing pressures.
Positive Factors
Solid Recent Performance
The ETF has shown positive returns so far this year and in the most recent month, indicating improving momentum.
Strong Core Pharma Holdings
Several major pharmaceutical names in the top holdings, such as Bristol-Myers Squibb, Johnson & Johnson, Merck, Pfizer, Viatris, and Biogen, have delivered strong year-to-date gains that support the fund’s results.
Focused Healthcare Exposure
The fund’s near-total allocation to U.S. healthcare and pharmaceuticals offers targeted exposure to a defensive sector that can be more resilient in economic slowdowns.
Negative Factors
High Sector Concentration
Almost all assets are in the healthcare sector, so the ETF is heavily exposed to swings in pharmaceutical and biotech markets.
Mixed Performance Among Top Holdings
Some large positions like AbbVie, Eli Lilly, Regeneron, and Zoetis have been weak so far this year, which can drag on overall returns if the trend continues.
Above-Average Expense Ratio
The fund’s fee is relatively high for an ETF, which means more of the gross return is lost to costs over time.

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

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, from large, well-known companies like Johnson & Johnson and Pfizer to other major pharmaceutical firms. Someone might consider this ETF if they want focused exposure to the potential growth of new medicines, treatments, and long-term health care demand, while spreading money across many pharma stocks instead of picking just one. A key risk is that it is heavily concentrated in pharmaceutical companies, so its price can swing with drug trial results, regulation changes, 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 performance largely steered by heavyweights like Bristol-Myers Squibb, Johnson & Johnson, and Merck. Bristol-Myers has been rising and helps pull the fund forward, while J&J and Merck have been steadier, acting like ballast in choppy markets. On the flip side, AbbVie and Eli Lilly have been losing steam lately, tempering overall gains despite strong long-term stories. With nearly all exposure in U.S. health care and a tight focus on pharmaceuticals, this ETF is making a concentrated bet on drugmakers’ pipelines and pricing power.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bristol-Myers Squibb7.21%$2.17M$119.87B19.23%
78
Outperform
Johnson & Johnson7.05%$2.12M$547.64B45.05%
78
Outperform
Merck & Company6.92%$2.08M$276.38B32.50%
80
Outperform
AbbVie6.61%$1.99M$351.47B2.62%
66
Neutral
Eli Lilly & Co6.42%$1.93M$835.18B-1.03%
72
Outperform
Viatris3.86%$1.16M$16.99B79.52%
60
Neutral
Pfizer3.77%$1.13M$153.59B16.22%
74
Outperform
Regeneron3.70%$1.11M$79.44B21.87%
78
Outperform
Biogen3.66%$1.10M$27.06B51.67%
74
Outperform
Zoetis3.50%$1.05M$49.15B-23.25%
74
Outperform

FTXH Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
34.16
Negative
100DMA
33.88
Negative
200DMA
31.26
Positive
Market Momentum
MACD
-0.12
Positive
RSI
47.59
Neutral
STOCH
35.85
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTXH, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 34.11, equal to the 50-day MA of 34.16, and equal to the 200-day MA of 31.26, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 35.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTXH.

FTXH Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$32.14M0.60%
72
Outperform
$99.54M0.54%
53
Neutral
$92.86M0.35%
67
Neutral
$67.02M0.19%
65
Neutral
$59.56M0.34%
60
Neutral
$39.39M0.65%
48
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTXH
First Trust Nasdaq Pharmaceuticals ETF
33.81
8.62
34.22%
LFSC
F/M Emerald Life Sciences Innovation ETF
XHS
SPDR S&P Health Care Services 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.
DisclaimerThis 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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