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Should You Invest in the First Trust NASDAQ Bank ETF (FTXO)?
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Launched on September 20, 2016, the First Trust NASDAQ Bank ETF (FTXO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Banking segment of the equity market.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Banking is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.12 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Banking segment of the equity market. FTXO seeks to match the performance of the Nasdaq US Smart Banks Index before fees and expenses.
The Nasdaq US Smart Banks Index is a modified factor weighted index, designed to provide exposure to US companies within the banking 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 0.6%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.
Looking at individual holdings, Citigroup Inc. (C) accounts for about 8.75% of total assets, followed by Truist Financial Corporation (TFC) and Jpmorgan Chase & Co. (JPM).
The top 10 holdings account for about 60.64% of total assets under management.
Performance and Risk
The ETF has lost about 4.09% and it's up approximately 21.21% so far this year and in the past one year (as of 04/01/2026), respectively. FTXO has traded between $25.916 and $41.45 during this last 52-week period.
The ETF has a beta of 0.94 and standard deviation of 25% for the trailing three-year period. With about 48 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NASDAQ Bank 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, FTXO is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
State Street SPDR S&P Bank ETF (KBE) tracks S&P Banks Select Industry Index and the Invesco KBW Bank ETF (KBWB) tracks KBW Nasdaq Bank index. State Street SPDR S&P Bank ETF has $1.29 billion in assets, Invesco KBW Bank ETF has $4.84 billion. KBE has an expense ratio of 0.35%, and KBWB charges 0.35%.
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 Bank ETF (FTXO)?
Launched on September 20, 2016, the First Trust NASDAQ Bank ETF (FTXO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Banking segment of the equity market.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Banking is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.12 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Banking segment of the equity market. FTXO seeks to match the performance of the Nasdaq US Smart Banks Index before fees and expenses.
The Nasdaq US Smart Banks Index is a modified factor weighted index, designed to provide exposure to US companies within the banking 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 0.6%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.
Looking at individual holdings, Citigroup Inc. (C) accounts for about 8.75% of total assets, followed by Truist Financial Corporation (TFC) and Jpmorgan Chase & Co. (JPM).The top 10 holdings account for about 60.64% of total assets under management.
Performance and Risk
The ETF has lost about 4.09% and it's up approximately 21.21% so far this year and in the past one year (as of 04/01/2026), respectively. FTXO has traded between $25.916 and $41.45 during this last 52-week period.
The ETF has a beta of 0.94 and standard deviation of 25% for the trailing three-year period. With about 48 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NASDAQ Bank 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, FTXO is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
State Street SPDR S&P Bank ETF (KBE) tracks S&P Banks Select Industry Index and the Invesco KBW Bank ETF (KBWB) tracks KBW Nasdaq Bank index. State Street SPDR S&P Bank ETF has $1.29 billion in assets, Invesco KBW Bank ETF has $4.84 billion. KBE has an expense ratio of 0.35%, and KBWB charges 0.35%.
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.