FTXL Profile
The First Trust Nasdaq Semiconductor ETF is strategically designed to provide investors with targeted exposure to the semiconductor sector. The fund commits at least 90% of its net assets, including any investment borrowings, to investing in common stocks and depository receipts that are part of its designated index. This index focuses exclusively on U.S. companies within the semiconductor industry, chosen for their liquidity and performance based on a composite score that evaluates volatility, value, and growth metrics.
The underlying index of the ETF is meticulously crafted to reflect the performance of semiconductor companies by weighting them according to their scores on three critical investment factors: volatility, value, and growth. This approach ensures that the fund captures the potential of leading semiconductor firms while balancing risk and return. By focusing on these parameters, the index aims to identify companies that are both financially robust and well-positioned for future growth.
As a non-diversified fund, the First Trust Nasdaq Semiconductor ETF concentrates its investments within the semiconductor sector. This focused strategy allows investors to gain precise exposure to a key industry driving technological advancement and innovation. By concentrating its holdings, the fund aims to maximize its exposure to high-potential semiconductor companies, which are essential to advancements in various technology sectors including computing, communications, and consumer electronics.
Managed by First Trust, the ETF benefits from the firm's expertise in creating and managing sector-specific investment solutions. The fund's investment strategy reflects First Trust's commitment to delivering specialized and high-performance investment products. By targeting companies with strong liquidity and favorable scores in volatility, value, and growth, the ETF provides investors with a robust tool to capitalize on the growth and innovation within the semiconductor industry.
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