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Should You Invest in the First Trust Indxx NextG ETF (NXTG)?
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Launched on February 17, 2011, the First Trust Indxx NextG ETF (NXTG - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Telecom segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $383.22 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. NXTG seeks to match the performance of the INDXX 5G & NEXTG THEMATIC INDEX before fees and expenses.
The Indxx 5G & NextG Thematic Index tracks the performance of companies engaged in the smartphone segment of the telecom and technology sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.7%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.52%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Samsung Sds Co., Ltd. (018260.KS) accounts for about 1.45% of total assets, followed by Us Dollar ($USD) and Delta Electronics Inc. (2308.TT).
The top 10 holdings account for about 13.72% of total assets under management.
Performance and Risk
The ETF has added roughly 14.62% and is up roughly 19.36% so far this year and in the past one year (as of 07/29/2025), respectively. NXTG has traded between $74.67 and $98.353 during this last 52-week period.
The ETF has a beta of 0.87 and standard deviation of 17.15% for the trailing three-year period. With about 106 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 reasonable 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.
() tracks . The fund has $0.00 million in assets. has an expense ratio of 0%.
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 Indxx NextG ETF (NXTG)?
Launched on February 17, 2011, the First Trust Indxx NextG ETF (NXTG - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Telecom segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $383.22 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. NXTG seeks to match the performance of the INDXX 5G & NEXTG THEMATIC INDEX before fees and expenses.
The Indxx 5G & NextG Thematic Index tracks the performance of companies engaged in the smartphone segment of the telecom and technology sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.7%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.52%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Samsung Sds Co., Ltd. (018260.KS) accounts for about 1.45% of total assets, followed by Us Dollar ($USD) and Delta Electronics Inc. (2308.TT).
The top 10 holdings account for about 13.72% of total assets under management.
Performance and Risk
The ETF has added roughly 14.62% and is up roughly 19.36% so far this year and in the past one year (as of 07/29/2025), respectively. NXTG has traded between $74.67 and $98.353 during this last 52-week period.
The ETF has a beta of 0.87 and standard deviation of 17.15% for the trailing three-year period. With about 106 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 reasonable 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.
() tracks . The fund has $0.00 million in assets. has an expense ratio of 0%.
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.