First Trust Nasdaq Bank
ALTAR
Score™
7.7% info Recommen-
dation
SPECULATIVE
2019E    2020E
P/E
ratio
11.5x P/Sales
ratio
3.5x
P/BV
ratio
1.3x Div.
yield
2.9%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The First Trust Nasdaq Bank ETF tracks an index composed of 30 U.S. banking companies. Holdings are selected by their liquidity, and weighted based on volatility, value, and growth factors.

FUND BASICS
Category US Equities
Fund Sponsor First Trust
Website www.ftportfolios.com
Inception date Sep 20, 2016
Assets (mns) $137
Currency USD
Expense ratio 60 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian
Weighting Multi-Factor
Index replication
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 30
Wgt avg mkt cap (mns) $114,891
Large cap (>$10bn) 75.2%
Mid cap ($2-10bn) 24.8%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
CITIGROUP INC 8.5 %
JPMORGAN CHASE & CO 8.3 %
PNC FINANCIAL SERVICES GROUP 7.9 %
US BANCORP 7.3 %
WELLS FARGO & CO 7.1 %
CITIZENS FINANCIAL GROUP, INC. 4.2 %
FIRST HORIZON NATIONAL CORP 4.2 %
BANK OF AMERICA CORP 4.1 %
ZIONS BANCORPORATION 4.0 %
HUNTINGTON BANCSHARES INC 3.9 %
Total 59.5 %

TOP COUNTRY EXPOSURE
UNITED STATES 99.9 %










HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru December 31)
Year-to-date 1 year 5 years 10 years Since Incep.
30.1% 30.1% -- -- 13.4%

Market Correlations
versus... Beta R-squared
S&P500 1.40 66%
MSCI EAFE 1.27 44%
MSCI Emg. Mkts. 0.85 34%

Technical Indicators
Recent close $27.32
30d moving avg. $27.89
Annualized volatility 20.9%
Short interest (ETF) 0.0%
Relative strength (RSI) 46

Liquidity measures
Avg. volume (thou.) 33
Turnover 0.7%
Bid/Ask (% of price) 0.05%
ADV underlying (mns) $4,163

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Nasdaq Bank ETF based on the alternatives' overlap in portfolio holdings with FTXO. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: FTXO Expense: 60 bp ALTAR Score™: 7.7%


ALTERNATIVE ETFs BASED ON OVERLAP WITH FTXO
Ticker Fund
Name
Overlap1
vs FTXO
(%)
Expense
ratio
(bp)
Savings
vs FTXO
(bp)
ALTAR
Score™
(%)
ALTAR
vs FTXO
(%)
KBWB Invesco KBW Bank Portfolio 69.7 35 25 7.5 -0.2
IAT iShares DJ US Regional Banks 52.7 42 18 7.4 -0.3
KBE KBW Bank ETF 49.0 35 25 8.1 +0.4
KRE SPDR KBW Regional Banking 47.1 35 25 8.0 +0.3
IYG iShares DJ US Financial Services 35.7 42 18 6.1 -1.6
XLF Financials Select Sector SPDR 33.6 13 47 6.7 -1.0
FNCL Fidelity MSCI Financials 32.1 8 52 7.1 -0.6
RWW Invesco S&P Financials Revenue 31.4 45 15 7.0 -0.7
VFH Vanguard Financials 31.4 10 50 7.1 -0.6
IEFN iShares Evolved U.S. Financials 28.3 18 42 7.1 -0.5
JHMF John Hancock Multifactor Financials 27.8 40 20 6.3 -1.4
RYF Invesco S&P Equal Weight Financials 26.4 40 20 7.0 -0.7
DFNL Davis Select Financial 25.6 64 -4 6.6 -1.1
IYF iShares DJ US Financials 25.1 42 18 5.8 -1.9
IXG iShares S&P Global Financial Sector 20.6 46 14 8.1 +0.4
UTRN Vesper U.S. Large Cap Short-Term Reversal Strategy 20.2 75 -15 7.2 -0.5
KBWR Invesco KBW Regional Bank 19.8 35 25 8.4 +0.7
FXO First Trust Financial Alphadex 19.1 63 -3 7.5 -0.1
FOVL iShares Focused Value Factor 17.7 25 35 8.5 +0.8
SPVU Invesco S&P 500 Value 16.9 13 47 10.2 +2.5

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
First Trust Nasdaq Bank
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 10.0 %
Divided by: Fwd. P/BV 1.2 x
Less: Expense ratio 60 bp
Equals: ALTAR Score 7.7 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.64 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.