GRID - ETF AI Analysis

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

Rating:63Neutral

Price Target:―

GRID, the First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index ETF, has a solid overall rating driven by strong core holdings like ABB, Quanta Services, Eaton, and Hubbell, which all show robust financial performance, positive earnings commentary, and generally supportive technical trends. This strength is partly offset by more mixed names such as E.ON and Schneider Electric, where weaker momentum, cash flow challenges, or higher valuations weigh on the fund, and investors should also note the key risk that many top holdings face potential overvaluation or bearish technical signals despite their strong fundamentals.

Positive Factors

Solid Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Strong Top Contributors

Several of the largest holdings, such as Eaton, Quanta Services, and Prysmian, have delivered strong year-to-date performance, helping support the fund’s returns.

Global Diversification in Developed Markets

Holdings spread across the U.S. and multiple European and Asian countries help reduce the impact of weakness in any single market.

Negative Factors

High Sector Concentration

More than half of the portfolio is in industrials and a large portion in utilities, making the fund sensitive to downturns in these areas.

Meaningful Weight in Lagging Stocks

Some sizable positions, including Schneider Electric and Johnson Controls, have shown weak year-to-date performance, which can drag on overall returns.

Above-Average Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the return is used to cover fees instead of going to investors.

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

AUM8.24B

RegionGlobal

Expense Ratio0.56%

Beta0.99

IssuerFirst Trust

Inception DateNov 16, 2009

Dividend Yield0.91%

Asset ClassEquity

Index TrackedNASDAQ OMX Clean Edge Smart Grid Infrastr (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume577,369

30 Day Avg. Volume529,949

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

181.97

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering92

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

GRID Summary

GRID is an ETF that follows the Nasdaq Clean Edge Smart Grid Infrastructure Index, focusing on companies that help modernize power grids and support clean energy. It holds firms involved in smart meters, energy storage, and electric infrastructure across the U.S. and other countries. Well-known holdings include Johnson Controls and Eaton, both key players in building and energy systems. Someone might invest in GRID for growth potential in the shift toward cleaner, smarter energy and for global diversification. A key risk is that it’s concentrated in infrastructure and industrial stocks, so it can rise or fall more with that sector.

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 riding a powerful wave of industrial and utility names tied to the global buildout of smarter, cleaner power networks. Heavyweights like ABB, Johnson Controls, and Schneider Electric are doing the heavy lifting, with rising share prices reflecting strong demand for automation and grid modernization. Eaton and Quanta Services add more spark, benefiting from robust project backlogs. On the flip side, European utilities such as E.ON look more mixed, occasionally taking some shine off returns. Overall, the fund is globally diversified but clearly anchored in industrials and grid-focused infrastructure plays.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JCI	Johnson Controls	8.61%	$674.47M	$85.43B	72.53%	70 Outperform
ABB	ABB Ltd	8.60%	$674.12M	kr1.44T	41.74%	78 Outperform
NG	National Grid	8.51%	$666.63M	£66.89B	38.42%	76 Outperform
SU	Schneider Electric	7.90%	$618.93M	€142.81B	15.78%	62 Neutral
ETN	Eaton	7.39%	$579.05M	$137.92B	27.34%	75 Outperform
EOAN	E.ON SE	4.38%	$343.01M	€48.80B	52.15%	61 Neutral
PWR	Quanta Services	4.38%	$342.91M	$84.68B	126.74%	78 Outperform
PRY	Prysmian SpA	4.08%	$319.44M	€28.04B	83.38%	65 Neutral
HUBB	Hubbell B	2.78%	$218.04M	$25.97B	38.86%	77 Outperform
TRN	Terna S.p.A.	1.92%	$150.22M	€19.64B	20.92%	72 Outperform

GRID Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

164.19

Positive

100DMA

158.68

Positive

200DMA

149.37

Positive

Market Momentum

MACD

3.21

Positive

RSI

45.73

Neutral

STOCH

52.99

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For GRID, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 173.95, equal to the 50-day MA of 164.19, and equal to the 200-day MA of 149.37, indicating a neutral trend. The MACD of 3.21 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRID.

GRID Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
GRID	―	―	$8.24B	0.56%	63 Neutral
CIBR	―	―	$9.64B	0.58%	71 Outperform
BAI	―	―	$9.04B	0.55%	60 Neutral
GUNR	―	―	$7.45B	0.46%	59 Neutral
ARKK	―	―	$6.54B	0.75%	58 Neutral
NFRA	―	―	$3.16B	0.47%	66 Neutral

Performance Comparison

GRID

First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index

169.26

53.34

46.01%

CIBR

First Trust NASDAQ Cybersecurity ETF

―

BAI

iShares A.I. Innovation and Tech Active ETF

―

GUNR

FlexShares Morningstar Global Upstream Natural Resources Index Fund

―

ARKK

Ark Innovation Etf

―

NFRA

FlexShares STOXX Global Broad Infrastructure Index Fund

―

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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