FTXH Profile
The First Trust Nasdaq Pharmaceuticals ETF is structured to invest primarily in U.S. pharmaceutical companies, focusing on those included in a specialized index. This index is meticulously designed to offer exposure to the pharmaceutical sector by selecting companies based on their liquidity and performance across three key investment factors: volatility, value, and growth. By investing at least 90% of its net assets, including any investment borrowings, in common stocks and depository receipts that are part of this index, the fund targets high-quality, high-performing pharmaceutical firms.
The index used by the ETF is composed of pharmaceutical companies that are chosen for their liquidity and then weighted according to their cumulative scores on volatility, value, and growth metrics. This approach ensures that the fund not only provides exposure to leading pharmaceutical companies but also optimizes for performance based on these critical investment factors. This targeted strategy aims to balance risk and reward, making the fund a compelling choice for investors seeking specialized exposure within the pharmaceutical industry.
As a non-diversified fund, the First Trust Nasdaq Pharmaceuticals ETF concentrates its investments specifically within the pharmaceutical sector, allowing for a more focused investment approach. This concentration is designed to capture the potential upside of companies that are heavily involved in the development and production of pharmaceutical products. The non-diversified nature of the fund underscores its commitment to providing investors with precise and targeted exposure to this crucial industry.
Managed by First Trust, the ETF leverages the firm's expertise in indexing and sector-specific investments to deliver a fund that aligns with its strategic focus on the pharmaceutical sector. By concentrating on companies with strong scores in volatility, value, and growth, the fund aims to offer investors a refined and effective means of accessing the pharmaceutical market, reflecting First Trust's dedication to providing specialized investment solutions.
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