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AFLG - ETF AI Analysis

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AFLG

First Trust Active Factor Large Cap ETF (AFLG)

Rating:74Outperform
Price Target:
AFLG, the First Trust Active Factor Large Cap ETF, earns a solid overall rating thanks to its heavy exposure to high-quality tech leaders like Alphabet, Apple, Microsoft, and Nvidia, all supported by strong financial performance and growth in AI, cloud, and services. The fund is somewhat held back by weaker names such as Seagate and Altria, where leverage, technical weakness, and industry challenges add risk. Its main risk factor is concentration in large-cap technology and AI-related companies, which can increase volatility if that sector faces a downturn.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum.
Leading Growth Companies in Top Holdings
Several major positions, including large technology and e-commerce names, have delivered strong results that support the fund’s overall performance.
Broad Sector Diversification
Holdings spread across technology, consumer, financials, industrials, health care, and other sectors help reduce the impact of weakness in any single industry.
Negative Factors
High Technology Concentration
A large share of the portfolio is in technology stocks, which can make the fund more sensitive to swings in that sector.
Mixed Performance Among Top Holdings
Some of the biggest positions, including well-known mega-cap stocks, have recently shown weak or negative performance that can drag on returns.
Higher-Than-Index Expense Ratio
The fund’s expense ratio is noticeably higher than many low-cost index ETFs, which can slightly reduce long-term net returns for investors.

AFLG vs. SPDR S&P 500 ETF (SPY)

AFLG Summary

The First Trust Active Factor Large Cap ETF (AFLG) is an actively managed fund that focuses on large U.S. companies, mainly in technology and other major sectors. Instead of tracking a fixed index, the managers pick stocks using their own rules to try to beat traditional large-cap benchmarks. It holds many well-known names such as Nvidia and Apple, giving investors broad exposure to leading U.S. businesses and potential long-term growth. However, because it is heavily invested in large tech-related companies, its price can rise and fall sharply with swings in the technology sector and overall stock market.
How much will it cost me?The First Trust Active Factor Large Cap ETF (AFLG) has an expense ratio of 3.67%, which means you’ll pay $36.70 per year for every $1,000 invested. This is significantly higher than average because it is an actively managed fund, which typically involves more research and trading compared to passively managed ETFs that track an index.
What would affect this ETF?The AFLG ETF, with significant exposure to technology and large-cap U.S. companies like Nvidia, Microsoft, and Apple, could benefit from continued innovation and growth in the tech sector, as well as a stable U.S. economy. However, it may face challenges from rising interest rates, which can pressure high-growth stocks, and potential regulatory changes affecting major tech firms. Broader economic downturns or sector-specific disruptions could also negatively impact its performance.

AFLG Top 10 Holdings

AFLG is leaning heavily into U.S. Big Tech and chip names, with Nvidia, Apple, Alphabet, and Broadcom forming the core engine of the fund. These giants have been solid drivers over the past few months, even if they’ve hit a recent soft patch. Microsoft and Amazon, by contrast, have been more of a drag lately, losing some momentum after earlier strength. The real bright spots now are the semiconductor equipment players like Lam Research, Applied Materials, and Seagate, which are quietly powering ahead and giving the tech-heavy portfolio an extra boost.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.18%$48.69M$4.71T22.22%
76
Outperform
Apple6.43%$43.61M$4.53T47.93%
79
Outperform
Alphabet Class A6.33%$42.92M$4.34T110.50%
85
Outperform
Microsoft3.13%$21.20M$2.90T-22.12%
79
Outperform
Broadcom2.65%$17.94M$1.71T36.42%
76
Outperform
Amazon2.25%$15.24M$2.61T12.14%
71
Outperform
Lam Research1.65%$11.16M$439.46B226.68%
77
Outperform
Seagate Tech1.18%$8.00M$183.90B485.12%
68
Neutral
Applied Materials1.17%$7.94M$478.79B184.37%
77
Outperform
Altria Group1.05%$7.14M$121.42B22.54%
64
Neutral

AFLG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
43.15
Positive
100DMA
41.54
Positive
200DMA
40.31
Positive
Market Momentum
MACD
0.13
Negative
RSI
60.16
Neutral
STOCH
89.53
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFLG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 43.23, equal to the 50-day MA of 43.15, and equal to the 200-day MA of 40.31, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 89.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFLG.

AFLG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$677.16M0.55%
74
Outperform
$978.09M0.18%
72
Outperform
$926.99M0.75%
71
Outperform
$923.20M0.95%
69
Neutral
$836.78M0.29%
73
Outperform
$822.49M0.35%
75
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AFLG
First Trust Active Factor Large Cap ETF
43.81
7.59
20.96%
DSPY
Tema S&P 500 Historical Weight ETF Strategy
FTQI
First Trust Hedged BuyWrite Income ETF
OMAH
VistaShares Target 15 Berkshire Select Income ETF
NBCR
Neuberger Berman Core Equity ETF
INFO
Harbor PanAgora Dynamic Large Cap Core ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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