QABA - ETF AI Analysis

Top Page

First Trust NASDAQ ABA Community Bank Index Fund (QABA)

Rating:73Outperform

Price Target:―

QABA’s rating suggests it is a generally solid ETF focused on community and regional banks, with its quality supported by strong holdings like United Bankshares and Texas Capital Bancshares, which show healthy financial performance, reasonable valuations, and supportive technical trends or shareholder-friendly actions like buybacks. The fund is held back somewhat by weaker technical momentum and valuation concerns in some banks such as First Financial Bankshares and Bank OZK, where bearish price trends or asset quality issues add caution. The main risk factor is the ETF’s concentration in a single industry—banking—which makes it more sensitive to interest rate changes, credit conditions, and regulatory shifts.

Positive Factors

Strong Top Bank Holdings

Most of the largest community bank positions have shown solid gains this year, helping support the fund’s overall results.

Recent Performance Momentum

The ETF has delivered positive returns over the year and the last few months, indicating improving momentum despite a slightly weak recent month.

Targeted Community Bank Exposure

The fund offers focused access to U.S. community banks, which can benefit when regional lending and local economies are healthy.

Negative Factors

High Sector Concentration in Financials

Almost the entire portfolio is invested in financial stocks, so the fund is very sensitive to problems in the banking sector.

Limited Geographic Diversification

With nearly all assets in U.S. companies, the ETF offers little protection if the U.S. economy or banking system weakens.

Above-Average Expense Ratio

The fund’s relatively high fee for an ETF can eat into returns over time, especially compared with lower-cost index alternatives.

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

AUM81.94M

RegionNorth America

Expense Ratio0.60%

Beta0.82

IssuerFirst Trust

Inception DateJun 29, 2009

Dividend Yield2.29%

Asset ClassEquity

Index TrackedNASDAQ OMX ABA Community Bank

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume11,107

30 Day Avg. Volume9,839

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

66.24

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering150

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QABA Summary

QABA is an ETF that follows the NASDAQ OMX ABA Community Bank Index, focusing on U.S. community and regional banks. These are smaller, locally focused banks that lend to households and small businesses across the country. The fund holds many financial companies, including names like Wintrust Financial and Commerce Bancshares. Someone might invest in QABA to get targeted exposure to the banking sector and to diversify beyond the biggest Wall Street banks. A key risk is that it is heavily concentrated in regional bank stocks, so its price can rise or fall sharply with changes in the financial sector and the broader economy.

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 very much a pure play on U.S. community and regional banks, with names like Wintrust Financial and Commerce Bancshares quietly steering the fund higher on steady, if unspectacular, gains. The real spark lately comes from faster-rising holdings such as Hancock Whitney and Texas Capital Bancshares, which have been doing the heavy lifting for performance. On the flip side, International Bancshares and TFS Financial have been more of a drag in the short term, showing softer momentum. Overall, it’s a U.S.-only, bank-heavy bet with a few standout winners pulling the load.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WTFC	Wintrust Financial	4.68%	$3.80M	$10.33B	18.68%	78 Outperform
CBSH	Commerce Bancshares	3.45%	$2.80M	$8.15B	-13.50%	73 Outperform
UBSI	United Bankshares	2.82%	$2.28M	$6.22B	15.68%	80 Outperform
HWC	Hancock Whitney	2.71%	$2.19M	$5.97B	18.76%	72 Outperform
OZK	Bank OZK	2.50%	$2.03M	$5.59B	-6.40%	70 Outperform
EBC	Eastern Bankshares	2.33%	$1.89M	$5.13B	16.51%	74 Outperform
FFIN	First Financial Bankshares	2.18%	$1.77M	$4.82B	-10.37%	63 Neutral
TCBI	Texas Capital Bancshares	2.13%	$1.73M	$4.55B	25.08%	79 Outperform
IBOC	International Bancshares	2.02%	$1.64M	$4.46B	10.28%	67 Neutral
TFSL	TFS Financial	1.90%	$1.54M	$4.20B	8.79%	71 Outperform

QABA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

59.14

Positive

100DMA

56.85

Positive

200DMA

55.49

Positive

Market Momentum

MACD

1.33

Negative

RSI

60.03

Neutral

STOCH

75.60

Neutral

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 60.94, equal to the 50-day MA of 59.14, and equal to the 200-day MA of 55.49, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 60.03 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 is Neutral, 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	―	―	$81.94M	0.60%	―
PFI	―	―	$56.59M	0.60%	―
KBWR	―	―	$53.79M	0.35%	―
GABF	―	―	$50.42M	0.32%	―
FBDC	―	―	$37.63M	13.69%	―
PSCF	―	―	$24.63M	0.29%	―

Performance Comparison

QABA

First Trust NASDAQ ABA Community Bank Index Fund

62.40

6.08

10.80%

PFI

Invesco DWA Financial Momentum ETF

―

KBWR

Invesco KBW Regional Banking ETF

―

GABF

Gabelli Financial Services Opportunities ETF

―

FBDC

FT Confluence BDC & Specialty Finance Income 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: ―

Table of Contents