QABA - ETF AI Analysis

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First Trust NASDAQ ABA Community Bank Index Fund (QABA)

Rating:68Neutral

Price Target:―

The ETF QABA, which tracks community banks, has a solid overall rating driven by strong contributions from holdings like Wintrust Financial (WTFC) and Texas Capital Bancshares (TCBI). WTFC stands out for its robust profitability, effective cash flow management, and stable market position, while TCBI benefits from strong financial performance and successful strategic initiatives. However, weaker holdings like TFS Financial (TFSL), with high leverage and declining cash flow, and Eastern Bankshares (EBC), facing valuation and profit margin challenges, slightly weigh on the fund's overall rating. A key risk factor is the ETF's concentration in the banking sector, which could expose it to broader industry-specific challenges such as interest rate pressures and economic downturns.

Positive Factors

Strong Performing Holdings

Several top holdings, like Eastern Bankshares and Texas Capital Bancshares, have shown steady gains, supporting the ETF's performance.

Focused Sector Exposure

The ETF's heavy focus on the financial sector aligns with its strategy of targeting community banks, offering specialized exposure for investors.

Reasonable Expense Ratio

The ETF's expense ratio is competitive for a niche fund, helping investors retain more of their returns.

Negative Factors

Underperforming Holdings

Some key positions, like Commerce Bancshares and First Financial Bankshares, have lagged this year, dragging down overall performance.

High Sector Concentration

With nearly all assets in the financial sector, the ETF is highly exposed to risks specific to banking and financial services.

Limited Geographic Diversification

The ETF is overwhelmingly focused on U.S. companies, offering minimal exposure to international markets.

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

AUM84.21M

RegionNorth America

Expense Ratio0.60%

Beta0.84

IssuerFirst Trust

Inception DateJun 29, 2009

Dividend Yield2.26%

Asset ClassEquity

Index TrackedNASDAQ OMX ABA Community Bank

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume6,163

30 Day Avg. Volume35,929

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

62.20

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering141

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QABA Summary

The First Trust NASDAQ ABA Community Bank Index Fund (Ticker: QABA) is an ETF that focuses on regional banks in the U.S., tracking the NASDAQ OMX ABA Community Bank Index. It includes companies like Wintrust Financial and Commerce Bancshares, which are known for supporting local economies and small businesses. This ETF could be a good choice for investors looking to diversify into the financial sector while backing community-focused institutions. However, since it primarily invests in regional banks, its performance can be heavily influenced by changes in the U.S. economy and interest rates.

How much will it cost me?The expense ratio for QABA is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on a specialized niche of regional banks, requiring more research and management effort.

What would affect this ETF?QABA's focus on U.S. regional banks means it could benefit from a strong U.S. economy, increased lending activity, and favorable interest rate environments that boost bank profitability. However, it may face challenges from rising interest rates that could slow borrowing, regulatory changes impacting smaller banks, or economic downturns that affect local businesses and communities. Its reliance on the financial sector and top holdings in regional banks makes it sensitive to sector-specific trends and economic conditions.

QABA Top 10 Holdings

QABA is heavily concentrated in U.S. regional banks, with a mix of rising and lagging performers shaping its trajectory. Texas Capital Bancshares and TFS Financial are bright spots, showing resilience and steady growth, while Hancock Whitney adds a touch of optimism with its strong financials despite technical concerns. On the flip side, First Financial Bankshares and Bank OZK are dragging the fund, weighed down by bearish trends and asset quality worries. Overall, the ETF’s focus on community banks offers a niche exposure, but the uneven performance across holdings highlights the challenges in this sector.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WTFC	Wintrust Financial	4.66%	$3.97M	$9.05B	-0.24%	78 Outperform
CBSH	Commerce Bancshares	3.73%	$3.17M	$7.03B	-20.73%	65 Neutral
UBSI	United Bankshares	2.74%	$2.33M	$5.27B	-9.25%	70 Outperform
HWC	Hancock Whitney	2.69%	$2.29M	$5.15B	5.10%	72 Outperform
OZK	Bank OZK	2.68%	$2.28M	$5.22B	-4.82%	70 Outperform
FFIN	First Financial Bankshares	2.32%	$1.97M	$4.46B	-23.79%	63 Neutral
TCBI	Texas Capital Bancshares	2.14%	$1.82M	$4.15B	3.82%	74 Outperform
IBOC	International Bancshares	2.13%	$1.82M	$4.11B	-8.21%	67 Neutral
TFSL	TFS Financial	2.07%	$1.76M	$3.92B	5.96%	71 Outperform
EBC	Eastern Bankshares	2.06%	$1.75M	$4.43B	2.77%	70 Outperform

QABA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

54.98

Positive

100DMA

55.66

Positive

200DMA

53.90

Positive

Market Momentum

MACD

0.45

Negative

RSI

59.47

Neutral

STOCH

87.36

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QABA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 54.77, equal to the 50-day MA of 54.98, and equal to the 200-day MA of 53.90, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 87.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QABA.

QABA Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
QABA	―	―	$84.21M	0.60%	―
PFI	―	―	$56.55M	0.60%	―
KBWR	―	―	$51.06M	0.35%	―
FBDC	―	―	$39.27M	13.69%	―
GABF	―	―	$36.89M	0.32%	―
PSCF	―	―	$18.86M	0.29%	―

Performance Comparison

QABA

First Trust NASDAQ ABA Community Bank Index Fund

56.40

-3.73

-6.20%

PFI

Invesco DWA Financial Momentum ETF

―

KBWR

Invesco KBW Regional Banking ETF

―

FBDC

FT Confluence BDC & Specialty Finance Income ETF

―

GABF

Gabelli Financial Services Opportunities ETF

―

PSCF

Invesco S&P SmallCap Financials 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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