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Should You Invest in the First Trust Indxx NextG ETF (NXTG)?
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If you're interested in broad exposure to the Technology - Telecom segment of the equity market, look no further than the First Trust Indxx NextG ETF (NXTG - Free Report) , a passively managed exchange traded fund launched on 02/17/2011.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $369.30 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. NXTG seeks to match the performance of the INDXX 5G & NEXTG THEMATIC INDEX before fees and expenses.
The Indxx 5G & NextG Thematic Index tracks the performance of companies engaged in the smartphone segment of the telecom and technology sectors.
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 0.70%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.91%.
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.
Looking at individual holdings, Xiaomi Corporation (class B) (1810.HK) accounts for about 1.91% of total assets, followed by F5 Inc. (FFIV - Free Report) and Telefonaktiebolaget Lm Ericsson (class B) (ERICB.SS).
The top 10 holdings account for about 15.51% of total assets under management.
Performance and Risk
So far this year, NXTG has gained about 10.49%, and is up about 19.12% in the last one year (as of 11/20/2024). During this past 52-week period, the fund has traded between $71.96 and $88.68.
The ETF has a beta of 0.86 and standard deviation of 17.66% for the trailing three-year period. With about 110 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Indxx NextG 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, NXTG is a sufficient option for those seeking exposure to the Technology ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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Should You Invest in the First Trust Indxx NextG ETF (NXTG)?
If you're interested in broad exposure to the Technology - Telecom segment of the equity market, look no further than the First Trust Indxx NextG ETF (NXTG - Free Report) , a passively managed exchange traded fund launched on 02/17/2011.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $369.30 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. NXTG seeks to match the performance of the INDXX 5G & NEXTG THEMATIC INDEX before fees and expenses.
The Indxx 5G & NextG Thematic Index tracks the performance of companies engaged in the smartphone segment of the telecom and technology sectors.
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 0.70%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.91%.
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.
Looking at individual holdings, Xiaomi Corporation (class B) (1810.HK) accounts for about 1.91% of total assets, followed by F5 Inc. (FFIV - Free Report) and Telefonaktiebolaget Lm Ericsson (class B) (ERICB.SS).
The top 10 holdings account for about 15.51% of total assets under management.
Performance and Risk
So far this year, NXTG has gained about 10.49%, and is up about 19.12% in the last one year (as of 11/20/2024). During this past 52-week period, the fund has traded between $71.96 and $88.68.
The ETF has a beta of 0.86 and standard deviation of 17.66% for the trailing three-year period. With about 110 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Indxx NextG 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, NXTG is a sufficient option for those seeking exposure to the Technology ETFs area of the market. Investors might also want to consider some other ETF options in the space.