The First Trust NASDAQ Semiconductor ETF (FTXL) offers exposure to the semiconductor sector, but is it the right choice for investors today?
So, what’s a smart beta ETF? Well, they’re different from the usual market cap-weighted funds. Instead of just following the market, they aim to pick stocks based on specific characteristics that might lead to better performance.
FTXL is managed by First Trust Advisors and has around $378.89 million in assets. It tries to match the performance of the Nasdaq US Smart Semiconductor Index, which focuses on U.S. semiconductor companies.
When it comes to costs, FTXL has an annual operating expense of 0.60%, which is pretty standard for this type of fund. Plus, it offers a 12-month trailing dividend yield of 0.53%.
This ETF is heavily invested in the Information Technology sector, with Nvidia being its largest holding at about 9.94%. The top ten holdings make up around 62.78% of the total assets.
In terms of performance, FTXL has seen a gain of about 1.09% this year and around 13.35% over the past year. It’s traded between $77.94 and $107.11 in the last 52 weeks.
If you’re looking for alternatives, there are other ETFs like the iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) that you might want to check out. They have larger asset bases and lower expense ratios.
In the end, if you’re considering FTXL, it’s a solid option for those wanting to dive into the semiconductor market. Just make sure to look at your investment goals and see if it fits your strategy.
