FTXN Profile
The First Trust Nasdaq Oil & Gas ETF is structured to offer targeted exposure to the oil and gas sector within the U.S. equity market. The fund is mandated to invest at least 90% of its net assets, including any borrowings used for investment purposes, in common stocks and depository receipts that are components of the underlying index. This index focuses specifically on U.S. oil and gas companies, selected based on their liquidity and evaluated according to a composite score that measures volatility, value, and growth.
The index underlying this ETF is meticulously designed to represent the oil and gas sector by incorporating companies that are weighted according to their performance in three key investment factors: volatility, value, and growth. This approach ensures that the fund captures the performance of leading firms in the sector while managing risk and return dynamics effectively. The weighting mechanism is intended to reflect the sector’s most impactful players based on their financial stability and market performance.
As a non-diversified fund, the First Trust Nasdaq Oil & Gas ETF concentrates its investments solely within the oil and gas sector. This focused strategy provides investors with a concentrated exposure to companies engaged in the exploration, production, and distribution of oil and gas. By specializing in this sector, the fund aims to deliver enhanced performance linked to the fluctuations and growth prospects within the oil and gas industry, which is a critical component of the global energy market.
Managed by First Trust, the ETF benefits from the firm's extensive experience in creating sector-specific investment products. The fund’s strategy is designed to capitalize on the unique opportunities and challenges within the oil and gas sector. By focusing on companies with strong liquidity and favorable investment metrics, the First Trust Nasdaq Oil & Gas ETF provides a targeted investment tool for those looking to gain exposure to the dynamics of the oil and gas industry.
|
