GRID - ETF AI Analysis

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

Rating:64Neutral

Price Target:―

GRID appears to be a solid, but not top-tier, clean infrastructure ETF, supported by strong core holdings like ABB, Eaton, and Quanta Services, which benefit from robust financial performance, positive earnings calls, and healthy growth backlogs. The fund’s rating is held back somewhat by names like E.ON and Schneider Electric, where weaker or mixed financial trends, bearish technical signals, and relatively expensive valuations introduce more uncertainty. A key risk factor is that several major holdings share valuation and momentum concerns, which could make the ETF more sensitive to market pullbacks in this sector.

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)

AUM6.78B

RegionGlobal

Expense Ratio0.56%

Beta1.01

IssuerFirst Trust

Inception DateNov 16, 2009

Dividend Yield0.89%

Asset ClassEquity

Index TrackedNASDAQ OMX Clean Edge Smart Grid Infrastr (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume682,335

30 Day Avg. Volume398,470

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

178.96

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 leaning hard into industrial and utility names powering the global shift to smarter, cleaner grids, with a clear tilt toward Europe and other international markets rather than pure U.S. tech. National Grid and ABB are steady workhorses, quietly helping returns, while Eaton, Prysmian, Quanta Services, Hubbell, and nVent are the real spark plugs, all rising and giving the fund a solid tailwind. On the flip side, Schneider Electric and Johnson Controls have been losing steam lately, acting as mild brakes on an otherwise energized portfolio.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ABB	ABB Ltd	8.69%	$598.95M	kr1.44T	35.30%	78 Outperform
JCI	Johnson Controls	8.36%	$575.77M	$85.08B	55.90%	70 Outperform
NG	National Grid	8.13%	$559.84M	£63.93B	33.44%	76 Outperform
SU	Schneider Electric	8.00%	$551.27M	€144.66B	5.58%	62 Neutral
ETN	Eaton	7.64%	$526.39M	$146.45B	19.13%	75 Outperform
PRY	Prysmian SpA	4.42%	$304.76M	€30.43B	55.80%	65 Neutral
EOAN	E.ON SE	4.22%	$290.44M	€47.00B	54.37%	61 Neutral
PWR	Quanta Services	3.88%	$267.22M	$76.73B	69.94%	78 Outperform
HUBB	Hubbell B	2.81%	$193.65M	$26.90B	27.47%	77 Outperform
NVT	nVent Electric	1.91%	$131.56M	$18.50B	70.74%	76 Outperform

GRID Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

157.35

Positive

100DMA

154.85

Positive

200DMA

145.23

Positive

Market Momentum

MACD

3.92

Negative

RSI

76.51

Negative

STOCH

80.47

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For GRID, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 162.75, equal to the 50-day MA of 157.35, and equal to the 200-day MA of 145.23, indicating a bullish trend. The MACD of 3.92 indicates Negative momentum. The RSI at 76.51 is Negative, neither overbought nor oversold. The STOCH value of 80.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRID.

GRID Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
GRID	―	―	$6.78B	0.56%	―
CIBR	―	―	$9.98B	0.58%	―
IGF	―	―	$9.66B	0.39%	―
BAI	―	―	$8.61B	0.55%	―
GUNR	―	―	$6.80B	0.46%	―
NFRA	―	―	$2.98B	0.47%	―

Performance Comparison

GRID

First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index

174.13

54.71

45.81%

CIBR

First Trust NASDAQ Cybersecurity ETF

―

IGF

iShares Global Infrastructure ETF

―

BAI

iShares A.I. Innovation and Tech Active ETF

―

GUNR

FlexShares Morningstar Global Upstream Natural Resources Index Fund

―

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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