GRID - ETF AI Analysis

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First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID)

Rating:64Neutral

Price Target:―

GRID, the First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index ETF, earns a solid overall rating driven by several high-quality industrial and infrastructure leaders like Quanta Services, ABB, Eaton, and Hubbell, which show strong financial performance and positive business outlooks. The fund is somewhat held back by more mixed names such as E.ON and Prysmian, where challenges in revenue growth, cash flow, and operational efficiency introduce some uncertainty. Investors should also note that many top holdings appear somewhat expensive and share similar sector exposures, which can increase sensitivity to valuation pullbacks and industry-specific risks.

Positive Factors

Strong Top Holdings

Many of the largest positions, such as Eaton, ABB, Quanta Services, and nVent Electric, have shown strong year-to-date gains, helping drive the ETF’s overall performance.

Global Diversification

The fund spreads its investments across the U.S. and multiple countries in Europe, Asia, and the Americas, reducing reliance on any single market.

Sector Balance Within Infrastructure Theme

Holdings are spread mainly across industrials, general infrastructure-related companies, technology, and utilities, providing a mix of businesses tied to the smart grid theme.

Negative Factors

High Concentration in Top Positions

A relatively small number of companies make up a large share of the portfolio, which increases the impact if any of these holdings run into trouble.

Recent Short-Term Weakness

Despite solid year-to-date results, the ETF has shown weak performance over the past one and three months, which may signal near-term volatility.

Above-Average Expense Ratio

The fund’s expense ratio is higher than many broad-market ETFs, meaning more of the returns are used to cover fees.

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

AUM11.83B

RegionGlobal

Expense Ratio0.56%

Beta1.04

IssuerFirst Trust

Inception DateNov 16, 2009

Dividend Yield0.79%

Asset ClassEquity

Index TrackedNASDAQ OMX Clean Edge Smart Grid Infrastr (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume858,650

30 Day Avg. Volume685,783

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

215.13

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering106

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

GRID Summary

GRID is an exchange-traded fund (ETF) that follows the Nasdaq Clean Edge Smart Grid Infrastructure Index, focusing on companies that help build and modernize power grids and support clean energy. It holds firms involved in smart meters, electric equipment, and grid technology, with big names like Eaton and Schneider Electric in the mix. Investors might consider GRID if they want global diversification and exposure to the long-term growth of cleaner, smarter energy infrastructure. However, because it is concentrated in infrastructure and industrial companies, its price can go up and down more than the broader stock market.

How much will it cost me?The expense ratio for GRID is 0.56%, which means you’ll pay $5.60 per year for every $1,000 invested. This is higher than average because GRID is a specialized ETF focused on clean energy and smart grid technologies, which typically require more active management compared to broad market index ETFs.

What would affect this ETF?GRID's focus on clean energy and smart grid technologies positions it to benefit from global trends toward renewable energy adoption and infrastructure modernization, supported by increasing government incentives and ESG-focused investments. However, the ETF could face challenges from rising interest rates, which may increase borrowing costs for infrastructure projects, and potential regulatory changes or geopolitical tensions that could impact its global holdings. Its heavy exposure to industrials and utilities makes it sensitive to economic cycles and energy sector volatility.

GRID Top 10 Holdings

GRID is powered by a global cast of industrial and utility names, with Eaton and Johnson Controls acting as steady engines for the fund thanks to rising, if somewhat cautious, momentum. European heavyweights ABB and Schneider Electric add muscle in smart grid hardware, though their recent trading has been more mixed, occasionally losing steam. Quanta Services and Prysmian bring strong long-term trends but have been lagging in the short run, creating some drag. Overall, the ETF leans heavily into clean-energy infrastructure, with a clear tilt toward industrials and grid-focused utilities across the U.S. and Europe.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SU	Schneider Electric	9.27%	$1.09B	€166.19B	38.76%	62 Neutral
ETN	Eaton	8.83%	$1.04B	$161.30B	20.59%	75 Outperform
JCI	Johnson Controls	8.32%	$981.78M	$86.72B	33.37%	70 Outperform
PWR	Quanta Services	7.93%	$935.31M	$99.60B	68.32%	78 Outperform
ABB	ABB Ltd	7.88%	$929.63M	kr1.69T	47.41%	78 Outperform
NG	National Grid	4.25%	$502.02M	£59.64B	11.63%	76 Outperform
EOAN	E.ON SE	4.10%	$484.02M	€45.86B	12.75%	61 Neutral
PRY	Prysmian SpA	3.52%	$415.49M	€35.81B	64.24%	65 Neutral
NVT	nVent Electric	2.78%	$327.46M	$24.97B	68.72%	76 Outperform
HUBB	Hubbell B	2.49%	$293.89M	$24.82B	6.62%	77 Outperform

GRID Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

184.36

Negative

100DMA

185.10

Negative

200DMA

172.57

Positive

Market Momentum

MACD

0.26

Positive

RSI

44.81

Neutral

STOCH

5.56

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For GRID, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 182.77, equal to the 50-day MA of 184.36, and equal to the 200-day MA of 172.57, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRID.

GRID Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
GRID	―	―	$11.83B	0.56%	64 Neutral
SMH	―	―	$66.68B	0.35%	76 Outperform
CIBR	―	―	$15.19B	0.58%	71 Outperform
IGF	―	―	$10.56B	0.37%	65 Neutral
NFRA	―	―	$3.04B	0.47%	66 Neutral
BKGI	―	―	$1.37B	0.55%	68 Neutral

Performance Comparison

GRID

First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index

180.93

39.07

27.54%

SMH

VanEck Semiconductor ETF

―

CIBR

First Trust NASDAQ Cybersecurity ETF

―

IGF

iShares Global Infrastructure ETF

―

NFRA

FlexShares STOXX Global Broad Infrastructure Index Fund

―

BKGI

BNY Mellon Global Infrastructure Income 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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