LEGR - ETF AI Analysis

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First Trust Indxx Innovative Transaction & Process ETF (LEGR)

Rating:66Neutral

Price Target:―

The ETF LEGR has a solid overall rating, driven by strong contributions from holdings like TSMC and IBM. TSMC benefits from its strategic focus on advanced technologies and AI, while IBM's robust financial performance and focus on AI and hybrid cloud further enhance the fund's quality. However, weaker holdings such as Intel, which faces challenges in profitability and valuation, and Baidu, with concerns around operational efficiency and bearish technical indicators, slightly weigh down the overall rating. The fund's exposure to diverse sectors mitigates risk, but investors should note potential overvaluation in some holdings.

Positive Factors

Strong Top Holdings

Several key holdings, such as Micron and Alibaba, have delivered strong year-to-date performance, boosting the ETF’s returns.

Global Diversification

The ETF has exposure to multiple countries, including Germany, Hong Kong, and India, which helps reduce reliance on U.S. markets.

Sector Balance

The fund is diversified across sectors like financials and technology, reducing the impact of downturns in any single industry.

Negative Factors

High Expense Ratio

The ETF’s expense ratio of 0.65% is higher than many similar funds, which can eat into investor returns over time.

Underperforming Holdings

Some holdings, such as SAP SE, have shown weak year-to-date performance, which may drag on overall returns.

U.S. Market Concentration

With over 58% of its assets in U.S. companies, the ETF is heavily reliant on the performance of the domestic market.

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

AUM122.91M

RegionGlobal

Expense Ratio0.65%

Beta0.81

IssuerFirst Trust

Inception DateJan 24, 2018

Dividend Yield1.79%

Asset ClassEquity

Index TrackedIndxx Blockchain Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,069

30 Day Avg. Volume6,804

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

66.51

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering98

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

LEGR Summary

The First Trust Indxx Innovative Transaction & Process ETF (LEGR) is an investment fund that focuses on companies involved in blockchain technology, a system that securely manages data and transactions. It tracks the Indxx Blockchain Index, which includes businesses using or developing blockchain, such as Intel and Advanced Micro Devices (AMD). This ETF is a way to invest in the growth of blockchain while diversifying across sectors like technology and finance. However, new investors should know that the fund’s performance can be affected by the ups and downs of the blockchain industry, which is still evolving.

How much will it cost me?The expense ratio for the First Trust Indxx Innovative Transaction & Process ETF (LEGR) is 0.65%, which means you’ll pay $6.50 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on a specialized theme, blockchain technology, which requires more research and expertise.

What would affect this ETF?The LEGR ETF, focused on blockchain technology, could benefit from increasing adoption of blockchain across industries like finance and technology, as well as growing interest in digital transformation trends globally. However, it may face challenges from regulatory uncertainty around blockchain and cryptocurrency, as well as potential economic slowdowns that could impact technology and financial sectors, which make up a significant portion of its holdings.

LEGR Top 10 Holdings

LEGR’s focus on blockchain technology is evident in its tech-heavy portfolio, with companies like Micron and AMD driving performance through their strategic investments in AI and data centers. Micron has been rising steadily, while AMD shows mixed signals, with strong growth tempered by valuation concerns. IBM adds stability with its focus on AI and hybrid cloud, though its high P/E ratio raises caution. On the financial side, Industrial and Commercial Bank of China provides a global flavor but faces challenges in margins. Overall, the fund leans heavily into technology and finance, reflecting its blockchain-centric theme.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MU	Micron	2.30%	$2.83M	$284.06B	158.40%	77 Outperform
INTC	Intel	2.17%	$2.68M	$193.19B	102.68%	64 Neutral
AMD	Advanced Micro Devices	1.87%	$2.30M	$360.81B	70.13%	74 Outperform
IBM	International Business Machines	1.60%	$1.97M	$290.22B	35.87%	79 Outperform
TSM	TSMC	1.57%	$1.93M	$1.23T	59.37%	81 Outperform
CAP	Capgemini SE	1.57%	$1.93M	€25.16B	-8.20%	74 Outperform
ENGI	Engie SA	1.55%	$1.91M	€52.42B	41.36%	64 Neutral
CTSH	Cognizant	1.55%	$1.91M	$39.07B	2.42%	79 Outperform
IFX	Infineon Technologies AG	1.50%	$1.85M	€48.81B	23.09%	67 Neutral
NDA.SE	Nordea Bank Abp	1.49%	$1.84M	kr575.01B	62.84%	―

LEGR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

57.56

Positive

100DMA

56.10

Positive

200DMA

52.98

Positive

Market Momentum

MACD

0.31

Negative

RSI

62.84

Neutral

STOCH

66.50

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For LEGR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 57.51, equal to the 50-day MA of 57.56, and equal to the 200-day MA of 52.98, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 66.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEGR.

LEGR Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
LEGR	―	―	$122.91M	0.65%	―
CGW	―	―	$996.91M	0.59%	―
TAN	―	―	$952.06M	0.71%	―
IHAK	―	―	$864.63M	0.47%	―
BKCH	―	―	$359.46M	0.50%	―
WGMI	―	―	$284.44M	0.75%	―

Performance Comparison

LEGR

First Trust Indxx Innovative Transaction & Process ETF

58.83

11.93

25.44%

CGW

Invesco S&P Global Water Index ETF

―

TAN

Invesco Solar ETF

―

IHAK

iShares Cybersecurity & Tech ETF

―

BKCH

Global X Blockchain ETF

―

WGMI

Valkyrie Bitcoin Miners 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.

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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