FTXN - FTXN: Smart In Fund Name But Same Intelligence So Far
2024-05-26 22:00:00 ET
Summary
- The First Trust Nasdaq Oil & Gas ETF tracks the Nasdaq US Smart Oil & Gas Index and offers exposure to the oil and gas industry.
- FTXN holds 42 securities with Exxon Mobil as the top holding, but it is less concentrated than other energy funds.
- FTXN provides diversified exposure to the energy sector, but it does not consistently outperform other broad-based energy ETFs like the Energy Select Sector SPDR ETF.
As I’ve noted in prior writings, I’m bullish on the energy sector broadly. There’s broad underinvestment that will take years to right, and fossil fuel demand won’t go away, no matter how much policymakers try to push a green agenda. Many agree with me, and there are a lot of ways to take advantage of what I suspect could be years of tailwinds. So how do you play it? Perhaps with a “smarter” approach. To that end, let’s look at the First Trust Nasdaq Oil & Gas ETF ( FTXN ), which tracks the Nasdaq US Smart Oil & Gas Index, to determine if it’s a smart as the name makes it out to be for energy bulls....
FTXN: Smart In Fund Name But Same Intelligence So Far