First Trust Expanded Technology ETF (XPND)

Overview

The First Trust Expanded Technology ETF (FTXL) focuses on providing exposure to companies involved in technology-related businesses, including those outside traditional technology classifications. It aims for diversification beyond pure-play technology companies by including firms whose businesses rely heavily on technological advancements or innovation. The ETF offers a diversified investment across various technology-related sectors and sizes.

Reputation and Reliability

First Trust is a well-established ETF issuer with a reputation for offering innovative and specialized investment solutions.

Management Expertise

First Trust has experienced portfolio managers and research teams dedicated to actively managing and monitoring their ETF offerings.

Goal

To provide investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Raymond James SB-1 Equity Index.

Investment Approach and Strategy

Strategy: The ETF seeks to track the performance of the Raymond James SB-1 Equity Index, which aims to identify companies involved in technology expansion.

Composition The ETF primarily holds stocks of companies involved in technology-related sectors, with a focus on expanded technology.

Market Share: Insufficient data available to provide an accurate market share for FTXL.

Total Net Assets (AUM): 149900000

Key Competitors

• XLK
• VGT
• QQQ
• IGV
• SMH

Competitive Landscape

The ETF industry is highly competitive. FTXL competes with broad-based technology ETFs like XLK and VGT, as well as growth-oriented ETFs like QQQ. Its advantage lies in its expanded technology focus, which differentiates it from pure technology ETFs. However, it may have higher expense ratios and lower trading volumes compared to the larger, more established competitors.

Historical Performance: Historical performance data needs to be retrieved from financial data providers.

Benchmark Comparison: Benchmark comparison requires access to historical performance data and the specific benchmark index used by the ETF.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume for FTXL indicates moderate liquidity, which is sufficient for most retail investors but may impact larger institutional trades.

Bid-Ask Spread

The bid-ask spread is generally narrow, typically ranging from $0.01 to $0.05, indicating relatively low trading costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and GDP growth, along with sector-specific growth prospects and market sentiment, all influence FTXL's performance. Strong technological innovation and adoption rates typically benefit the ETF.

Growth Trajectory

The growth trajectory of FTXL is linked to the expansion of technology into various sectors and the continued demand for innovative technology solutions. Changes to strategy and holdings are actively managed to adapt to market dynamics.

Competitive Edge

FTXL differentiates itself through its 'expanded technology' investment approach, which includes companies that utilize technology in non-traditional tech sectors, unlike many other technology ETFs. This differentiated approach may provide exposure to underappreciated companies. The investment strategy offers diversification beyond typical technology sectors, potentially reducing concentration risk. The ETF is actively managed to respond to changes in the technology landscape, aiming to capture emerging opportunities.

Volatility

FTXL's historical volatility is similar to other technology-focused ETFs, which tends to be higher than broader market indices. Performance can be highly sensitive to technology sector sentiment.

Market Risk

The ETF is subject to market risk associated with technology stocks, including cyclical downturns, regulatory changes, and rapid technological obsolescence. Concentration in the technology sector also amplifies risk.

Ideal Investor Profile

The ideal investor is one who seeks exposure to technology companies beyond the typical tech sector, is comfortable with higher volatility, and has a long-term investment horizon.

Market Risk

FTXL is most suitable for long-term investors who believe in the continued growth and expansion of technology across various sectors. It may not be suitable for risk-averse investors or those seeking stable income.

First Trust Expanded Technology ETF (FTXL) offers a differentiated approach to technology investing by focusing on companies that expand the use of technology, not just traditional tech companies. Its primary focus is to track the Raymond James SB-1 Equity Index, and the expense ratio is around 0.6%. It offers diversification beyond pure-play technology firms, but its volatility might be higher. It is best suited for investors who have a long-term outlook and want broader exposure to the tech market.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Bloomberg
• Raymond James

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is estimated based on available assets under management and may not be exact. Historical performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.