FTXR Profile
The First Trust Nasdaq Transportation ETF focuses on providing investors with targeted exposure to the U.S. transportation sector. The fund commits to investing at least 90% of its net assets, including any borrowings for investment purposes, in common stocks and depository receipts that are constituents of the underlying index. This index is specifically designed to track the performance of U.S. companies operating within the transportation industry, ensuring that investments are concentrated in this key economic sector.
The index underlying the ETF is engineered to reflect the transportation sector by including companies selected based on their liquidity. These companies are then weighted according to their performance across three investment criteria: volatility, value, and growth. This methodology aims to balance risk and return by emphasizing firms that demonstrate favorable characteristics in these areas. The result is an index that provides a comprehensive snapshot of the transportation sector's dynamics.
As a non-diversified fund, the First Trust Nasdaq Transportation ETF allocates its investments solely within the transportation sector. This focused strategy allows investors to gain concentrated exposure to a critical segment of the economy, which encompasses various modes of transport including airlines, railroads, shipping, and logistics companies. The sector's performance can be influenced by factors such as fuel prices, regulatory changes, and economic conditions, making this fund a specialized tool for capturing these sector-specific trends.
Managed by First Trust, the ETF leverages the firm's expertise in sector-specific investment strategies. The fund's approach aims to capture the growth and performance potential within the transportation sector by focusing on companies with strong liquidity and favorable investment attributes. This targeted investment tool is designed for those looking to invest specifically in the transportation industry and benefit from its unique market opportunities and risks.
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