First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN)

Overview

First Trust NASDAQu00ae Clean Edgeu00ae Green Energy Index Fund (QCLN) seeks investment results that correspond generally to the price and yield, before fees and expenses, of the NASDAQu00ae Clean Edgeu00ae Green Energy Index. It focuses on US-listed companies in the clean energy sector, allocating assets based on the index methodology which targets companies engaged in the manufacturing, development, distribution, and installation of clean energy technologies.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for offering innovative and thematic investment products.

Management Expertise

First Trust has a dedicated team of portfolio managers and analysts with expertise in ETF management and thematic investing.

Goal

The fund's goal is to track the investment results of an index composed of clean energy companies.

Investment Approach and Strategy

Strategy: The fund uses a passive investment strategy designed to track the NASDAQu00ae Clean Edgeu00ae Green Energy Index.

Composition The ETF holds primarily stocks of companies involved in clean energy technologies.

Market Share: QCLN holds a significant share in the clean energy ETF market.

Total Net Assets (AUM): 225800000

Key Competitors

• ICLN
• TAN
• FAN

Competitive Landscape

The clean energy ETF market is moderately competitive, with a few large players dominating the AUM. QCLN focuses on US-listed companies, which can be an advantage or disadvantage depending on market sentiment toward US-focused investments compared to global clean energy opportunities. ICLN offers a broader, more global approach to the sector, while TAN concentrates specifically on solar energy, and FAN on wind energy. QCLN's differentiation lies in its specific index methodology and US focus.

Historical Performance: Historical performance data available from First Trust and financial data providers. Requires dynamic data retrieval for updates.

Benchmark Comparison: The ETF's performance is regularly compared to the NASDAQu00ae Clean Edgeu00ae Green Energy Index to assess tracking accuracy.

Expense Ratio: 0.58

Average Trading Volume

QCLN exhibits a good average trading volume, providing sufficient liquidity for investors.

Bid-Ask Spread

The bid-ask spread for QCLN is generally tight, indicating efficient trading.

Market Environment Factors

Economic indicators, government policies supporting clean energy, technological advancements, and ESG investing trends influence QCLN's performance.

Growth Trajectory

Growth trends are dependent on the adoption of clean energy technologies and related policies, which can cause volatility in its holdings.

Competitive Edge

QCLN's competitive edge comes from its focus on US-listed clean energy companies and its tracking of the NASDAQu00ae Clean Edgeu00ae Green Energy Index. The index's methodology aims to capture the most innovative and influential companies in the sector. This focus can appeal to investors specifically seeking exposure to US-based clean energy innovation. However, this targeted strategy makes the fund's performance reliant on the success of the US clean energy sector and its correlation with the underlying index.

Volatility

QCLN can exhibit higher volatility due to its concentration in the growth-oriented clean energy sector.

Market Risk

Market risk stems from fluctuations in the value of the underlying clean energy stocks, which are sensitive to changes in government regulations, commodity prices, and technological advancements.

Ideal Investor Profile

Ideal investors for QCLN are those seeking exposure to the clean energy sector, comfortable with potentially higher volatility, and believe in the long-term growth prospects of clean energy technologies.

Market Risk

QCLN is suitable for long-term investors who believe in the growth of the clean energy sector and are willing to accept a higher level of risk.

QCLN seeks to mirror the performance of the NASDAQu00ae Clean Edgeu00ae Green Energy Index, targeting US-listed clean energy companies. Its performance is closely tied to the overall health and growth of the clean energy sector, particularly in the US. While the ETF provides focused exposure to this emerging market, it carries inherent volatility linked to its holdings. Investors should be aware of the risks and be comfortable with the sector's long-term growth potential.

Data Sources:

• First Trust
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual financial circumstances and consultation with a qualified financial advisor.