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NXTG - ETF AI Analysis

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NXTG

First Trust Indxx NextG ETF (NXTG)

Rating:56Neutral
Price Target:
NXTG, the First Trust Indxx NextG ETF, earns a solid overall rating thanks to several high-quality tech and communications holdings with strong financial performance and growth prospects, such as Arista Networks, Apple, and Tata Consultancy Services, which benefit from leadership in AI, cloud, and digital services. The rating is held back somewhat by names like Tech Mahindra, NEC, and Xiaomi, where high valuations, operational challenges, or bearish technical trends introduce more uncertainty. The main risk factor is the fund’s concentration in technology and next-generation communications companies, which can make it more sensitive to sector downturns and shifts in market sentiment.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past few months, indicating solid recent momentum.
Leading Chip and 5G Holdings
Top positions in major semiconductor and technology names like Micron, Intel, Marvell, AMD, Qualcomm, and TSMC have delivered strong to steady results, supporting the fund’s returns.
Global Diversification
Holdings spread across the U.S., Asia, and Europe help reduce the impact of weakness in any single country or region.
Negative Factors
High Expense Ratio
The fund’s fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
Sector Concentration in Technology
With over half of the portfolio in technology and additional exposure in communication services, the ETF is heavily tied to the ups and downs of tech-related markets.
Some Lagging Holdings
At least one top holding, such as Wipro, has shown weak performance this year, which can drag on overall fund results if the weakness continues.

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

NXTG Summary

The First Trust Indxx NextG ETF (NXTG) is a fund that focuses on companies involved in 5G and next-generation wireless technology. It follows the Indxx 5G & NextG Thematic Index, holding a global mix of mainly technology and communication stocks that build chips, equipment, and services for faster mobile networks. Well-known holdings include Intel and AMD. Someone might invest in NXTG to seek long-term growth from the worldwide rollout of 5G and the devices that rely on it. A key risk is that it is heavily tied to tech and 5G trends, so its price can rise and fall sharply.
How much will it cost me?This ETF has an expense ratio of 0.70%, which means you’ll pay about $7.00 per year for every $1,000 invested. That’s higher than the average ETF because it’s a specialized, passively managed thematic fund focused on 5G companies, which typically costs more to run than broad market index funds.
What would affect this ETF?NXTG could benefit if global demand for faster mobile networks, cloud services, and connected devices keeps growing, which would support its technology and communication holdings like chipmakers and 5G equipment providers around the world. On the other hand, slower economic growth, higher interest rates that pressure tech valuations, supply chain disruptions for semiconductors, or new regulations affecting telecom and data use could weigh on the fund’s performance.

NXTG Top 10 Holdings

NXTG is essentially a global 5G and network-infrastructure play, with tech and communications names steering the ship. Apple is rising and helps anchor returns, while Arista Networks and Digital Realty add steady, data-center and cloud-driven support despite some mixed recent trading. On the flip side, Indian IT giants like HCL Technologies and Tata Consultancy Services have been lagging, acting as a brake on performance. With holdings spread across the U.S., Asia, and Europe, the fund is globally diversified but clearly concentrated in next-gen connectivity and digital infrastructure.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
NEC1.73%$9.33M¥6.79T9.57%
62
Neutral
HCL Technologies Limited1.63%$8.76M₹3.67T-7.33%
73
Outperform
Xiaomi1.61%$8.65MHK$796.94B-45.74%
71
Outperform
Apple1.56%$8.40M$4.90T52.64%
79
Outperform
Arista Networks1.54%$8.28M$215.35B53.40%
83
Outperform
Tech Mahindra Limited1.54%$8.27M₹1.64T14.77%
55
Neutral
Tata Consultancy Services Limited1.54%$8.27M₹8.80T-21.23%
80
Outperform
Fujitsu1.51%$8.11M¥6.77T-10.72%
74
Outperform
Sony1.49%$8.02M¥22.57T-9.58%
73
Outperform
Advanced Micro Devices1.46%$7.88M$791.48B177.32%
73
Outperform

NXTG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
151.49
Negative
100DMA
138.26
Positive
200DMA
124.01
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NXTG, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 146.76, equal to the 50-day MA of 151.49, and equal to the 200-day MA of 124.01, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXTG.

NXTG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$538.86M0.70%
56
Neutral
$976.26M0.75%
73
Outperform
$944.64M0.49%
67
Neutral
$934.30M0.40%
61
Neutral
$750.11M0.85%
52
Neutral
$701.24M0.65%
64
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NXTG
First Trust Indxx NextG ETF
144.93
49.34
51.62%
IVES
Dan IVES Wedbush AI Revolution ETF
TRFK
Pacer Data and Digital Revolution ETF
GII
SPDR S&P Global Infrastructure ETF
NUKZ
Range Nuclear Renaissance Index ETF
ROBT
First Trust Nasdaq Artificial Intelligence & Robotics 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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