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GRID - ETF AI Analysis

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GRID

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

Rating:63Neutral
Price Target:
GRID’s rating suggests it is a solid but not top-tier clean infrastructure ETF, with its quality driven largely by strong, diversified industrial leaders. Heavily weighted holdings like Eaton, ABB, Quanta Services, and National Grid support the fund through strong financial performance, positive earnings outlooks, and sizable project backlogs, even though several appear somewhat expensive. The main risk is that some key names, such as Schneider Electric, nVent, and others, show bearish or cautious technical signals and potential overvaluation, which could add volatility despite the generally strong fundamentals.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the year so far and in recent months, indicating solid momentum.
Leading Infrastructure Holdings
Several of the largest positions, including major industrial and grid-focused companies, have delivered strong returns, helping drive the fund’s overall results.
Global Diversification
Holdings spread across the U.S. and multiple European and Asian countries help reduce the impact of weakness in any single market.
Negative Factors
Above-Average Expense Ratio
The fund’s fee is on the higher side for an ETF, which can slightly reduce long-term returns compared with lower-cost options.
Sector Concentration in Industrials and Related Areas
A large share of assets is tied to industrial and grid-related companies, which can hurt performance if this segment faces a downturn.
Meaningful Single-Stock Weights
Several individual holdings each make up a noticeable portion of the portfolio, increasing the impact if any of these companies stumble.

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

GRID Summary

GRID is an ETF that follows the Nasdaq Clean Edge Smart Grid Infrastructure Index, focusing on companies that help modernize energy systems and power grids. It holds firms involved in smart meters, energy storage, and connecting renewable energy to the grid. Well-known holdings include Eaton and Nvidia. An investor might choose GRID to tap into the long-term growth of cleaner, more efficient energy infrastructure while spreading money across many companies and countries. A key risk is that it is concentrated in the clean energy and infrastructure theme, so its price can swing more than the overall 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 industrial heavyweights like Eaton, ABB, Schneider Electric, and Johnson Controls, which have been steadily rising and doing much of the heavy lifting for returns. Quanta Services and Prysmian add extra spark with particularly strong recent momentum, while European utilities such as National Grid and E.ON are more of a slow-and-steady anchor than a growth engine. With a clear tilt toward industrials and smart-grid infrastructure names, and a globally spread roster rather than U.S.-only giants, the fund is a focused bet on the modernization of energy networks.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
ABB Ltd8.23%$883.84MCHF147.66B81.83%
78
Outperform
Eaton7.78%$835.08M$155.91B29.57%
75
Outperform
Schneider Electric7.16%$768.54M€153.54B26.79%
62
Neutral
Johnson Controls7.04%$755.98M$85.12B51.78%
70
Outperform
National Grid6.78%$727.96M£63.57B21.21%
76
Outperform
Prysmian SpA5.39%$578.59M€43.60B187.10%
65
Neutral
Quanta Services4.82%$517.21M$111.79B128.60%
78
Outperform
E.ON SE3.31%$355.06M€46.81B15.76%
61
Neutral
nVent Electric2.52%$271.12M$27.48B176.43%
76
Outperform
Hubbell B2.41%$258.33M$26.03B38.08%
77
Outperform

GRID Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
175.29
Positive
100DMA
169.02
Positive
200DMA
158.96
Positive
Market Momentum
MACD
5.95
Negative
RSI
69.07
Neutral
STOCH
82.44
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 186.72, equal to the 50-day MA of 175.29, and equal to the 200-day MA of 158.96, indicating a bullish trend. The MACD of 5.95 indicates Negative momentum. The RSI at 69.07 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 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
$10.72B0.56%
63
Neutral
$62.08B0.35%
76
Outperform
$10.73B0.39%
65
Neutral
$10.62B0.58%
72
Outperform
$3.06B0.47%
65
Neutral
$1.01B0.55%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRID
First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index
197.22
72.81
58.52%
SMH
VanEck Semiconductor ETF
IGF
iShares Global Infrastructure ETF
CIBR
First Trust NASDAQ Cybersecurity 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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