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Should You Invest in the First Trust NASDAQ Food & Beverage ETF (FTXG)?
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Designed to provide broad exposure to the Consumer Staples - Food & Beverage segment of the equity market, the First Trust NASDAQ Food & Beverage ETF (FTXG - Free Report) is a passively managed exchange traded fund launched on 09/20/2016.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Food & Beverage is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.03 billion, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Food & Beverage segment of the equity market. FTXG seeks to match the performance of the Nasdaq US Smart Food & Beverage Index before fees and expenses.
The Nasdaq US Smart Food & Beverage Index is a modified factor weighted index, designed to provide exposure to US companies within the food and beverage industry.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.54%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 96% of the portfolio.
Looking at individual holdings, General Mills, Inc. (GIS - Free Report) accounts for about 8.01% of total assets, followed by Campbell Soup Company (CPB - Free Report) and Molson Coors Beverage Company (TAP - Free Report) .
The top 10 holdings account for about 59.10% of total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ Food & Beverage ETF has lost about -2.34% so far, and is up roughly 2.74% over the last 12 months (as of 03/09/2023). FTXG has traded between $24.82 and $28.98 in this past 52-week period.
The ETF has a beta of 0.60 and standard deviation of 21.51% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NASDAQ Food & Beverage ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FTXG is a good option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
VanEck Future of Food ETF tracks ---------------------------------------- and the Invesco Dynamic Food & Beverage ETF (PBJ - Free Report) tracks Dynamic Food & Beverage Intellidex Index. VanEck Future of Food ETF has $2.72 million in assets, Invesco Dynamic Food & Beverage ETF has $323.39 million. YUMY has an expense ratio of 0.69% and PBJ charges 0.63%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the First Trust NASDAQ Food & Beverage ETF (FTXG)?
Designed to provide broad exposure to the Consumer Staples - Food & Beverage segment of the equity market, the First Trust NASDAQ Food & Beverage ETF (FTXG - Free Report) is a passively managed exchange traded fund launched on 09/20/2016.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Food & Beverage is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.03 billion, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Food & Beverage segment of the equity market. FTXG seeks to match the performance of the Nasdaq US Smart Food & Beverage Index before fees and expenses.
The Nasdaq US Smart Food & Beverage Index is a modified factor weighted index, designed to provide exposure to US companies within the food and beverage industry.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.54%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 96% of the portfolio.
Looking at individual holdings, General Mills, Inc. (GIS - Free Report) accounts for about 8.01% of total assets, followed by Campbell Soup Company (CPB - Free Report) and Molson Coors Beverage Company (TAP - Free Report) .
The top 10 holdings account for about 59.10% of total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ Food & Beverage ETF has lost about -2.34% so far, and is up roughly 2.74% over the last 12 months (as of 03/09/2023). FTXG has traded between $24.82 and $28.98 in this past 52-week period.
The ETF has a beta of 0.60 and standard deviation of 21.51% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NASDAQ Food & Beverage ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FTXG is a good option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
VanEck Future of Food ETF tracks ---------------------------------------- and the Invesco Dynamic Food & Beverage ETF (PBJ - Free Report) tracks Dynamic Food & Beverage Intellidex Index. VanEck Future of Food ETF has $2.72 million in assets, Invesco Dynamic Food & Beverage ETF has $323.39 million. YUMY has an expense ratio of 0.69% and PBJ charges 0.63%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.