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QABA - ETF AI Analysis

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QABA

First Trust NASDAQ ABA Community Bank Index Fund (QABA)

Rating:72Outperform
Price Target:
QABA, the First Trust NASDAQ ABA Community Bank Index Fund, has a solid overall rating driven mainly by strong, well-positioned regional banks like United Bankshares and Texas Capital Bancshares, which combine healthy financial performance with supportive technical trends and shareholder-friendly actions such as buybacks. Positive contributors also include Wintrust Financial and Eastern Bankshares, though some holdings like International Bancshares and First Financial Bankshares face bearish technical pressure, and certain names show signs of overvaluation or overbought conditions, highlighting the risk that bank-sector sentiment and interest rate moves can quickly affect the fund.
Positive Factors
Strong Recent Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating that its community bank focus has recently been rewarded by the market.
Generally Strong Top Holdings
Most of the largest positions in the fund have shown strong or steady performance this year, helping support the ETF’s overall returns.
Targeted Exposure to U.S. Community Banks
With almost all assets in U.S. financial stocks, the fund offers focused access to community and regional banks for investors who want to bet on this niche.
Negative Factors
High Sector Concentration in Financials
Nearly all of the ETF’s assets are in the financial sector, so a downturn in banks or financials could hit the fund especially hard.
Limited Geographic Diversification
The portfolio is overwhelmingly invested in U.S. companies, offering little protection if the U.S. market or banking system faces stress.
Relatively High Expense Ratio
The fund’s management fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

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

QABA Summary

QABA is an ETF that follows the NASDAQ OMX ABA Community Bank Index, focusing on U.S. community and regional banks. It holds a wide mix of smaller, local lenders rather than big Wall Street names, with top positions in banks like Wintrust Financial and Commerce Bancshares. Someone might invest in QABA to get diversified exposure to many community banks at once, aiming to benefit from local economic growth and the broader financial sector. A key risk is that it is heavily concentrated in bank stocks, so its value can swing with interest rates, the economy, and financial sector stress.
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 a pure play on U.S. community and regional banks, so financials completely set the tone. Wintrust Financial and Hancock Whitney have been rising lately, acting as key engines for the fund, while United Bankshares and Texas Capital Bancshares add more steady, upbeat momentum. Bank OZK and First Financial Bankshares are more mixed, with solid fundamentals but choppier trading that can occasionally tug on returns. With all its major bets in U.S. banks and no big tech or global names to smooth the ride, QABA lives and dies by the health of America’s local lenders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Wintrust Financial4.57%$3.55M$9.97B33.07%
78
Outperform
Commerce Bancshares3.41%$2.65M$7.43B-12.22%
73
Outperform
United Bankshares2.79%$2.17M$6.07B28.57%
80
Outperform
Hancock Whitney2.51%$1.95M$5.45B29.60%
72
Outperform
Bank OZK2.46%$1.91M$5.38B11.96%
70
Outperform
Eastern Bankshares2.17%$1.68M$4.65B34.34%
74
Outperform
First Financial Bankshares2.11%$1.64M$4.58B-3.16%
63
Neutral
International Bancshares2.03%$1.58M$4.43B16.95%
67
Neutral
Texas Capital Bancshares2.02%$1.57M$4.33B46.35%
79
Outperform
TFS Financial1.91%$1.48M$4.12B15.16%
71
Outperform

QABA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
59.47
Positive
100DMA
59.41
Positive
200DMA
57.16
Positive
Market Momentum
MACD
0.71
Positive
RSI
56.93
Neutral
STOCH
33.76
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 61.57, equal to the 50-day MA of 59.47, and equal to the 200-day MA of 57.16, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 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
$78.20M0.60%
72
Outperform
$54.07M0.32%
65
Neutral
$35.88M0.60%
72
Outperform
$34.24M12.44%
72
Outperform
$24.83M0.29%
69
Neutral
$13.12M0.44%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QABA
First Trust NASDAQ ABA Community Bank Index Fund
61.67
10.73
21.06%
GABF
Gabelli Financial Services Opportunities ETF
PFI
Invesco DWA Financial Momentum ETF
FBDC
FT Confluence BDC & Specialty Finance Income ETF
PSCF
Invesco S&P SmallCap Financials ETF
TFNS
T. Rowe Price 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.
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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