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First Trust Global Wind Energy ETF (FAN)FAN
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Upturn Advisory Summary
09/18/2024: FAN (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -6.69% | Upturn Advisory Performance  3 | Avg. Invested days: 31 |
| Profits based on simulation | ETF Returns Performance  1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -6.69% | Avg. Invested days: 31 |
Upturn Star Rating | ETF Returns Performance 1 |
| Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 31878 | Beta 1.05 |
52 Weeks Range 13.06 - 17.85 | Updated Date 09/19/2024 |
52 Weeks Range 13.06 - 17.85 | Updated Date 09/19/2024 |
AI Summarization
ETF First Trust Global Wind Energy ETF (FAN) Overview
Profile
Target Sector: Renewable Energy, specifically Wind Energy Asset Allocation: Primarily invests in global equities of companies involved in the wind energy industry, including wind turbine manufacturers, developers, and operators. Investment Strategy: Passively tracks the ISE Global Wind Energy Index, offering diversified exposure to the wind energy sector.
Objective
Primary Investment Goal: To provide long-term capital appreciation by tracking the performance of the ISE Global Wind Energy Index.
Issuer
First Trust Advisors L.P.
Reputation and Reliability:
- Reputable asset management firm with over $200 billion in assets under management.
- Strong track record in launching and managing thematic ETFs, including the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN).
- Experienced management team with deep knowledge and expertise in the renewable energy sector.
Market Share
2nd largest wind energy ETF with approximately 10% market share.
Total Net Assets
Approximately $1.2 billion.
Moat
- First mover advantage: One of the first wind energy ETFs in the market, providing investors with early access to the sector.
- Strong brand recognition: First Trust is a recognized leader in thematic ETFs.
- Experienced management team: Dedicated team with expertise in the wind energy sector.
Financial Performance
Performance has been strong, outperforming the broader market in recent years.
- Year-to-date return: 15.27% (as of October 26, 2023)
- 3-year annualized return: 19.31%
- 5-year annualized return: 17.14%
- 10-year annualized return: 14.45%
Benchmark Comparison:
- Outperformed the S&P 500 Index year-to-date and over the past 3, 5, and 10 years.
- Tracked closely with the ISE Global Wind Energy Index.
Growth Trajectory
The wind energy sector is expected to experience significant growth in the coming years, driven by increasing demand for clean energy and government support.
Liquidity
Average Trading Volume: Approximately 200,000 shares per day. Bid-Ask Spread: Tight bid-ask spread, indicating good liquidity.
Market Dynamics
- Growing demand for clean energy: Governments and businesses are increasingly investing in renewable energy sources to reduce carbon emissions.
- Technological advancements: Advancements in wind turbine technology are making wind energy more cost-competitive.
- Government support: Many governments offer subsidies and other incentives to promote wind energy development.
Competitors
| Competitor | Stock Symbol | Market Share |
|---|---|---|
| Invesco Global Clean Energy ETF | PBD | 60% |
| iShares Global Clean Energy ETF | ICLN | 20% |
Expense Ratio
0.60%
Investment Approach and Strategy
Strategy: Passively tracks the ISE Global Wind Energy Index. Composition: Primarily invests in equities of global wind energy companies.
Key Points
- Provides diversified exposure to the wind energy sector.
- Experienced management team with a strong track record.
- Strong financial performance with consistent outperformance.
- High liquidity with a tight bid-ask spread.
- Exposure to a growing industry with significant long-term potential.
Risks
- Market risk: The wind energy sector is susceptible to market volatility and economic fluctuations.
- Volatility: Wind energy stocks can be volatile, leading to short-term price fluctuations.
- Regulatory risk: Government policies and regulations can impact the wind energy industry.
- Technological risk: Advancements in other renewable energy technologies could impact the wind energy sector.
Who Should Consider Investing
- Investors seeking exposure to the growing wind energy sector.
- Investors with a long-term investment horizon.
- Investors comfortable with moderate volatility.
Fundamental Rating Based on AI
8.5 out of 10
Justification:
- Strong financial performance with consistent outperformance.
- Experienced management team with a strong track record.
- First mover advantage in the wind energy ETF market.
- Exposure to a growing industry with significant long-term potential.
- Moderate expense ratio and good liquidity.
Risks: While the ETF offers a compelling investment opportunity, investors should be aware of the associated risks, including market volatility, regulatory risk, and technological risk.
Resources and Disclaimers
- First Trust Global Wind Energy ETF website: https://www.ftportfolios.com/etfs/fan
- ISE Global Wind Energy Index: https://www.indexology.com/index/global-wind-energy-index
- Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/fan
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust Global Wind Energy ETF
The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the index. The index provides a benchmark for investors interested in tracking public companies throughout the world that are active in the wind energy industry. In order to be eligible for inclusion in the index, a security must be issued by a company that is actively engaged in some aspect of the wind energy industry. The fund is non-diversified.
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