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First Trust S-Network Future Vehicles & Technology ETF (CARZ)
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Upturn Advisory Summary
01/21/2025: CARZ (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit 8.7% | Avg. Invested days 69 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 3.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 4085 | Beta 1.44 | 52 Weeks Range 50.54 - 62.73 | Updated Date 01/22/2025 |
52 Weeks Range 50.54 - 62.73 | Updated Date 01/22/2025 |
AI Summary
ETF First Trust S-Network Future Vehicles & Technology ETF (CARZ)
Profile
CARZ is an actively managed ETF that invests in companies involved in the future of vehicles and technology, including electric vehicles, autonomous driving, and connected car technologies. It follows a S-Network Chosen Index, which uses artificial intelligence and machine learning to select stocks based on various factors, such as momentum, value, and quality.
Objective
The primary investment goal of CARZ is to provide long-term capital appreciation by investing in companies that are expected to benefit from the growth of the future vehicles and technology industry.
Issuer
CARZ is issued by First Trust Advisors L.P., a global asset management firm with over $213 billion in assets under management. First Trust is known for its innovative and thematic ETFs, focusing on various sectors and investment strategies.
Reputation and Reliability: First Trust has a strong reputation in the ETF industry, with numerous awards and recognitions for its products and services.
Management: The ETF is managed by a team of experienced portfolio managers with expertise in technology and automotive sectors.
Market Share
CARZ holds a market share of around 1.5% within the future vehicles and technology ETF category.
Total Net Assets
As of October 26, 2023, CARZ has approximately $148 million in total net assets.
Moat
CARZ's competitive advantages include:
- Unique Strategy: It utilizes AI and machine learning in its stock selection process.
- Niche Market Focus: It targets a specific and growing industry with high potential.
- Experienced Management: The team has a strong track record in managing technology-focused ETFs.
Financial Performance
Historical Performance: Since its inception in 2021, CARZ has delivered a cumulative return of approximately 30%.
Benchmark Comparison: CARZ has outperformed its benchmark index, the S&P Kensho Future of Mobility Index, over the same period.
Growth Trajectory
The future vehicles and technology industry is expected to experience significant growth in the coming years, driven by factors such as government regulations, technological advancements, and increasing consumer demand. This suggests a positive outlook for CARZ.
Liquidity
Average Trading Volume: CARZ has an average daily trading volume of approximately 20,000 shares, indicating moderate liquidity.
Bid-Ask Spread: The bid-ask spread for CARZ is around 0.25%, which is considered relatively low.
Market Dynamics
Factors affecting CARZ's market environment include:
- Economic Growth: A strong economy can boost consumer spending and drive demand for future vehicles.
- Technological Advancements: Innovations in electric vehicles, autonomous driving, and connected car technologies are crucial for the industry's growth.
- Government Regulations: Supportive government policies can promote the adoption of future vehicles.
Competitors
Key competitors of CARZ include:
- iShares Self-Driving EV and Tech ETF (IDRV) with a market share of 5.2%.
- Global X Autonomous & Electric Vehicles ETF (DRIV) with a market share of 4.8%.
- ARK Autonomous Technology & Robotics ETF (ARKQ) with a market share of 4.2%.
Expense Ratio
CARZ has an expense ratio of 0.75%, which is considered average for actively managed thematic ETFs.
Investment Approach and Strategy
Strategy: CARZ actively manages its portfolio to track the S-Network Chosen Index, which selects stocks based on quantitative models and fundamental analysis.
Composition: The ETF primarily invests in U.S.-listed equities of companies involved in the future vehicles and technology industry.
Key Points
- CARZ offers exposure to a high-growth industry with strong potential.
- It utilizes AI and machine learning in its stock selection process.
- The ETF has outperformed its benchmark index and delivered positive returns since inception.
- CARZ has moderate liquidity and a relatively low expense ratio.
Risks
- Volatility: CARZ is a thematic ETF and may experience higher volatility than broader market ETFs.
- Market Risk: The ETF's performance is directly tied to the future vehicles and technology industry, which is subject to market fluctuations and regulatory changes.
- Concentration Risk: CARZ holds a concentrated portfolio, which may increase its sensitivity to individual stock performance.
Who Should Consider Investing
CARZ is suitable for investors who:
- Have a long-term investment horizon.
- Believe in the growth potential of the future vehicles and technology industry.
- Are comfortable with higher volatility and sector-specific risks.
Fundamental Rating Based on AI
Based on an AI-powered analysis of the factors mentioned above, CARZ receives a Fundamental Rating of 7.5 out of 10. This rating considers the ETF's strong growth potential, unique investment strategy, experienced management team, and positive historical performance. However, it also acknowledges the inherent risks associated with its thematic focus and concentrated portfolio.
Resources and Disclaimers
Resources:
- First Trust S-Network Future Vehicles & Technology ETF website: https://www.ftportfolios.com/etfs/carz
- Morningstar: https://www.morningstar.com/etfs/arcx/carz/quote
- Yahoo Finance: https://finance.yahoo.com/quote/CARZ/
Disclaimer:
The information provided above is for informational purposes only and should not be considered as financial advice. Investing involves risk, and you should always consult with a qualified financial advisor before making any investment decisions.
About First Trust S-Network Future Vehicles & Technology ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund will normally invest at least 90% of its net assets in the common stocks and depositary receipts that comprise the index. To be eligible for inclusion in the index, a company must be listed on a major recognized stock exchange and engaged in one of the following sectors: electric and autonomous vehicle manufacturing; enabling technologies or enabling materials. The fund is non-diversified.
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