Should You Invest in the First Trust NASDAQ Semiconductor ETF (FTXL)?

Core Viewpoint - The First Trust NASDAQ Semiconductor ETF (FTXL) is a passively managed ETF that provides broad exposure to the Technology - Semiconductors segment, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][2]. Group 1: Fund Overview - FTXL was launched on September 20, 2016, and has accumulated over $291.81 million in assets, positioning it as an average-sized ETF in the semiconductor sector [3]. - The ETF aims to match the performance of the Nasdaq US Smart Semiconductor Index, which focuses on US companies in the semiconductor industry [3]. Group 2: Costs and Performance - The annual operating expense ratio for FTXL is 0.60%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.44% [4]. - Year-to-date, FTXL has increased by approximately 13.13%, but it has decreased by about -5.61% over the past year, with a trading range between $62.37 and $106.78 during the last 52 weeks [7]. Group 3: Sector Exposure and Holdings - FTXL has a 100% allocation in the Information Technology sector, with Broadcom Inc. (AVGO) making up about 9.19% of total assets, followed by Micron Technology, Inc. (MU) and Nvidia Corporation (NVDA) [5][6]. - The top 10 holdings constitute approximately 62.83% of the total assets under management [6]. Group 4: Alternatives and Rankings - FTXL holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns and momentum [8]. - Other ETFs in the semiconductor space include the iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH), with assets of $13.63 billion and $27.58 billion respectively, both having an expense ratio of 0.35% [9].