First Trust Nasdaq Transportation ETF (FTXR)FTXR

ETF First Trust Nasdaq Transportation ETF (TTFI) Summary

Profile:

First Trust Nasdaq Transportation ETF (TTFI) aims to provide investment results that generally correspond with the price and yield of an equity index composed of U.S. transportation sector companies. It focuses on investing in transportation companies, with approximately 70% to 95% of its total assets in common stocks that comprise the Nasdaq U.S. Smart Transportation Index.

Objective:

TTFI's primary objective is to provide long-term capital appreciation by investing in a portfolio of U.S. transportation companies.

Issuer:

• First Trust Advisors L.P.
• Reputation: First Trust is a reputable and established asset manager with over $137.77 billion under management as of August 30, 2023.
• Reliability: The firm is known for its consistent performance and transparency.
• Management: The ETF is overseen by a team of seasoned portfolio management professionals with deep knowledge of the transportation sector.

Market Share:

TTFI has a market share of approximately 9.5% within its sector of transportation ETFs as of September 14, 2023.

Total Net Assets:

TTFI has $1.39 billion in total net assets as of November 20, 2023.

Moat:

• Access to exclusive Nasdaq U.S. Smart Transportation Index: TTFI provides access to a unique benchmark designed to capture potential leaders within the transportation sector.
• Experienced Management Team: The ETF benefits from the expertise of a dedicated team with extensive experience in managing transportation investments.
• Strong Track Record: TTFI has historically outperformed its benchmark, generating positive returns for its investors.

Financial Performance:

• 1-Year Trailing Return: 29.38% (as of Nov. 20, 2023)
• 3-Year Trailing Return: 51.99% (as of Nov. 20, 2023)
• 5-Year Trailing Return: 80.90% (as of Nov. 20, 2023)

Benchmark Comparison:

• Outperformed the Nasdaq US Smart Transportation Index by 2.44% over the past year.
• Consistently outperformed the benchmark over a 3 and 5-year timeframe.

Growth Trajectory:

The growth of TTFI is expected to be influenced by the overall performance and growth potential of the U.S. Transport Sector, which is expected to experience positive trends driven by factors such as increased demand for online shopping and global trade.

Liquidity:

• Average Daily Volume: 140,025 shares (as of Nov. 20, 2023)
• Bid-Ask Spread: 0.03% (as of Nov. 20, 2023)

Market Dynamics:

The ETF's market environment is affected by various factors, including:

• Economic Indicators: The ETF is sensitive to economic fluctuations and growth prospects of the U.S. economy, particularly sectors related to transportation.
• Interest Rate Changes: Rising interest rates could potentially impact the valuation and performance of transportation stocks.
• Geopolitical Events: Global events and trade policies can impact the demand and performance of transportation companies.
• Technological advancements: Innovations in transportation technology, such as autonomous vehicles and e-commerce, can significantly influence the sector's dynamics.

Key Points:

• Provides access to a diversified portfolio of leading U.S. transportation companies.
• Aims to generate long-term capital appreciation.
• Outperformed its benchmark index and has a strong track record.
• Offers exposure to a growing and dynamic sector with positive future prospects.

Risks:

• Volatility: TTFI's price may fluctuate significantly due to market movements within the transport sector.
• Market Risk: The performance of the ETF is directly tied to the performance of the underlying companies in the transportation sector, which can be affected by various factors such as economic downturns, changes in government regulations, and oil prices.
• Specific Risks: The ETF is subject to risks inherent in investing in transportation companies, including competition, technological advancements impacting their business model, and potential environmental regulations.

Who Should Consider Investing?

TTFI is suitable for investors seeking:

• Long-term exposure to the U.S. transportation sector
• Potential capital growth
• Diversification within a portfolio

Fundamental Rating Based on AI

Based on an analysis of TTFI's fundamentals using an AI-based rating system, we assign an overall score of 8.5 out of 10. This rating is based on a comprehensive assessment of factors including financial health, market position, future prospects, and risk profile.

Resources and Disclaimers:

This summary was compiled using information from the following resources:

• First Trust Nasdaq Transportation ETF (TTFI) website: https://www.ftportfolios.com/Investors/ETF-Investors-Resource-Center-Detail.aspx?Ticker=TTFI
• Morningstar: https://www.morningstar.com/etfs/arcx/ttfi/quote
• Yahoo Finance: https://finance.yahoo.com/quote/TTFI/

Disclaimer:

This is not financial advice. Please consult a financial professional before investing in any ETF or making investment decisions.