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FTXO - ETF AI Analysis

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FTXO

First Trust Nasdaq Bank ETF (FTXO)

Rating:74Outperform
Price Target:
FTXO, the First Trust Nasdaq Bank ETF, earns a solid overall rating driven mainly by large, well-established banks like Wells Fargo and JPMorgan Chase, which benefit from strong earnings, positive momentum, and generally attractive or fair valuations. Additional support comes from holdings such as US Bancorp and M&T Bank, which show strong financial performance but face some overbought technical signals, while risks for the fund include its concentrated exposure to the banking sector and common challenges among several holdings around cash flow, leverage, and revenue growth.
Positive Factors
Improving Recent Performance
The ETF has shown strong short-term gains over the past month and a positive trend so far this year, indicating improving momentum in its bank holdings.
Strength in Several Key Banks
Some of the larger positions, such as Citigroup, PNC Financial, Citizens Financial, and M&T Bank, have delivered strong year-to-date results, helping support the fund’s overall performance.
Focused Exposure to U.S. Financials
The fund is heavily invested in U.S. banks and financial companies, giving investors targeted exposure to this specific part of the market.
Negative Factors
High Sector Concentration
Almost all of the ETF’s assets are in the financial sector, so a downturn in banks or financials could hurt the fund more than a more diversified ETF.
Mixed Performance Among Top Holdings
Several major positions, including Bank of America, JPMorgan Chase, Wells Fargo, and First Citizens BancShares, have shown weak year-to-date performance, which can drag on overall returns.
Relatively 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.

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

FTXO Summary

FTXO is the First Trust Nasdaq Bank ETF, which follows the Nasdaq US Banks Index and focuses on U.S. banks. It holds a basket of major banking stocks, including well-known names like JPMorgan Chase and Bank of America, along with other large regional banks. Someone might invest in FTXO to get diversified exposure to the banking sector in a single investment, potentially benefiting from economic growth and rising interest rates that can help banks’ profits. A key risk is that it is heavily concentrated in bank stocks, so it can go up or down sharply with changes in the financial sector and the overall economy.
How much will it cost me?The First Trust Nasdaq Bank ETF (FTXO) 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 a specialized, sector-focused ETF that requires active management to select and monitor bank stocks. Sector ETFs often have higher costs compared to broad, passively managed funds.
What would affect this ETF?The First Trust Nasdaq Bank ETF (FTXO) could benefit from rising interest rates, which typically boost bank profits by increasing the spread between lending and borrowing rates. Additionally, economic growth and advancements in financial technology may drive opportunities for the banking sector. However, challenges such as stricter banking regulations, economic slowdowns, or declining loan demand could negatively impact the ETF's performance, given its heavy reliance on U.S. banks like Wells Fargo, Citigroup, and Bank of America.

FTXO Top 10 Holdings

FTXO is a pure play on U.S. banks, with heavyweight positions in money-center giants like Citigroup, Bank of America, and JPMorgan steering the ship. Citigroup has been rising and helping the fund, while Bank of America and JPMorgan have seen more mixed, stop-and-go progress this year. Regional players like Truist, PNC, and Citizens Financial are quietly pulling their weight with steadier gains, helping offset lagging names such as Wells Fargo and First Citizens. Overall, it’s a concentrated bet on U.S. financials, especially large, traditional banks.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Citigroup8.82%$29.02M$219.47B89.13%
68
Neutral
Bank of America7.95%$26.16M$373.55B32.30%
72
Outperform
Truist Financial7.82%$25.73M$63.37B33.62%
70
Outperform
JPMorgan Chase7.81%$25.70M$831.44B28.13%
72
Outperform
Wells Fargo7.45%$24.49M$243.37B16.03%
80
Outperform
PNC Financial3.92%$12.91M$88.69B38.63%
71
Outperform
Citizens Financial3.90%$12.82M$27.11B73.49%
75
Outperform
US Bancorp3.85%$12.68M$86.27B39.30%
76
Outperform
M&T Bank3.78%$12.44M$32.02B29.16%
76
Outperform
First Citizens BancShares3.24%$10.67M$22.56B11.36%
73
Outperform

FTXO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
37.23
Positive
100DMA
37.93
Positive
200DMA
36.22
Positive
Market Momentum
MACD
0.54
Positive
RSI
57.60
Neutral
STOCH
37.11
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTXO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 38.70, equal to the 50-day MA of 37.23, and equal to the 200-day MA of 36.22, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 37.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTXO.

FTXO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$323.83M0.60%
74
Outperform
$624.77M0.38%
74
Outperform
$570.80M0.48%
62
Neutral
$457.38M0.35%
71
Outperform
$455.82M0.35%
69
Neutral
$434.83M5.39%
64
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTXO
First Trust Nasdaq Bank ETF
38.95
9.53
32.39%
IAT
iShares U.S. Regional Banks ETF
REM
iShares Mortgage Real Estate ETF
KIE
SPDR S&P Insurance ETF
KCE
SPDR S&P Capital Markets ETF
KBWD
Invesco KBW High Dividend Yield Financial 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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