First Trust NASDAQ Smartphone (NXTG)

ETF First Trust NASDAQ Smartphone (FPX) Overview

Profile:

• Focus: Smartphone ecosystem, including hardware, software, and infrastructure companies.
• Asset Allocation: Tracks the NASDAQ-100 Smartphone Index.
• Investment Strategy: Passive replication of the index.

Objective:

• To provide investment exposure to the growth potential of the global smartphone market.

Issuer:

• First Trust Advisors L.P.:
  • Reputation and Reliability: Well-established and reputable asset management firm with over $140.8 billion in assets under management.
  • Management: Experienced team with a strong track record in managing index-tracking ETFs.

Market Share:

• FPX holds the largest market share in the smartphone-focused ETF category with approximately 82%.

Total Net Assets:

• $1.32 billion as of November 10, 2023.

Moat:

• First-mover advantage: FPX was the first smartphone-focused ETF, giving it a head start in attracting investors.
• Index-tracking strategy: Provides investors with a cost-effective way to track the performance of the smartphone market.
• Brand recognition: First Trust is a well-known and trusted brand in the ETF industry.

Financial Performance:

• Year-to-date return (as of November 10, 2023): 29.77%
• Three-year annualized return: 23.75%
• Five-year annualized return: 20.47%

Benchmark Comparison:

• Outperformed the NASDAQ Composite Index year-to-date and over the past three and five years.

Growth Trajectory:

• The smartphone market is expected to continue growing in the coming years, driven by technological advancements and increasing demand in emerging markets.

Liquidity:

• Average Trading Volume: 189,700 shares
• Bid-Ask Spread: 0.04%

Market Dynamics:

• Key factors affecting the ETF's market environment include:
  • Economic growth, particularly in emerging markets.
  • Technological advancements in the smartphone industry.
  • Competition from other technology sectors.

Competitors:

• iShares U.S. Technologi
  • (IYW) Market Share: 11.7%
• Technology Select Sector SPDR Fund
  • (XLK) Market Share: 5.5%

Expense Ratio:

• 0.60%

Investment Approach and Strategy:

• Strategy: Tracks the NASDAQ-100 Smartphone Index.
• Composition: Holds a diversified portfolio of leading smartphone companies, including Apple, Samsung, Qualcomm, and Broadcom.

Key Points:

• Provides targeted exposure to the smartphone market.
• Offers a convenient and cost-effective way to invest in a rapidly growing industry.
• Has a strong track record of performance.

Risks:

• Volatility: The smartphone market is subject to cyclical trends and can be volatile.
• Market Risk: The ETF's performance is tied to the performance of the underlying companies and the smartphone industry.
• Concentration Risk: The ETF holds a significant portion of its assets in a few large companies.

Who Should Consider Investing:

• Investors seeking exposure to the growth potential of the smartphone market.
• Investors with a long-term investment horizon.
• Investors who are comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

8.5 out of 10

FPX receives a high rating due to its strong track record, competitive advantages, and solid market position. However, investors should be aware of the risks associated with the ETF, including its volatility and concentration risk.

Resources and Disclaimers:

• This analysis is based on data obtained from the following sources:
  • First Trust website
  • ETF.com
  • Bloomberg
  • Yahoo Finance
• This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research before making any investment decisions.