If you're interested in broad exposure to the Energy - Broad segment of the equity market, look no further than the First Trust NASDAQ Oil & Gas ETF (FTXN Quick QuoteFTXN - Free Report) , a passively managed exchange traded fund launched on September 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.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad 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 $902.26 million, making it one of the larger ETFs attempting to match the performance of the Energy - Broad segment of the equity market. FTXN seeks to match the performance of the Nasdaq US Smart Oil & Gas Index before fees and expenses.

The Nasdaq US Smart Oil & Gas Index is a modified factor weighted index, designed to provide exposure to US companies within the oil and gas industry.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

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 1.88%.

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 Energy sector -- about 100% of the portfolio.

Looking at individual holdings, Conocophillips (COP) accounts for about 7.74% of total assets, followed by Chevron Corporation (CVX) and Exxonmobil Holdings Corp. (XOM).

The top 10 holdings account for about 55.57% of total assets under management.

Performance and Risk

So far this year, FTXN has added roughly 37.81%, and is up roughly 35.97% in the last one year (as of 10/01/2026). During this past 52-week period, the fund has traded between $26.666 and $41.84.

The ETF has a beta of 0.48 and standard deviation of 23.79% for the trailing three-year period. With about 44 holdings, it has more concentrated exposure than peers.

Alternatives

First Trust NASDAQ Oil & Gas ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FTXN is an excellent option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

Vanguard Energy Index Fund ETF Shares (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the State Street Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy Index Fund ETF Shares has $10.41 billion in assets, State Street Energy Select Sector SPDR ETF has $39.68 billion. VDE has an expense ratio of 0.09%, and XLE charges 0.08%.

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.