AIRR - AI Analysis

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First Trust RBA American Industrial Renaissance ETF (AIRR)

Rating:71Outperform

Price Target:

$107.96

The ETF AIRR, managed by First Trust, has a solid overall rating, indicating a generally positive performance driven by strong holdings. Comfort Systems USA (FIX) stands out as a key contributor due to its robust financial performance, revenue growth, and strategic initiatives that position it well for future success. However, weaker holdings like Core & Main (CNM), which face bearish technical indicators and downward earnings guidance, may have slightly held back the fund's rating. A potential risk for the ETF is its exposure to holdings with high valuation metrics, which could impact future growth potential.

Positive Factors

Strong Top Holdings

Several of the ETF's largest positions, such as Kratos Defense and Sterling Infrastructure, have delivered strong year-to-date gains, supporting overall performance.

Industrial Sector Focus

The ETF's heavy exposure to the industrials sector aligns with growth trends in infrastructure and manufacturing, which have shown resilience.

Healthy Year-to-Date Performance

The fund has achieved solid year-to-date returns, indicating strong momentum in its holdings and strategy.

Negative Factors

High Sector Concentration

Nearly 90% of the ETF is allocated to industrials, which increases vulnerability to sector-specific downturns.

Limited Geographic Diversification

With almost 100% exposure to U.S. companies, the ETF lacks protection against global market opportunities or risks.

Relatively High Expense Ratio

The ETF's expense ratio is higher than many similar funds, which could reduce net returns for investors over time.

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

AUM6.12B

RegionNorth America

Expense Ratio0.70%

Beta1.29

IssuerFirst Trust

Inception DateMar 10, 2014

Dividend Yield0.21%

Asset ClassEquity

Index TrackedRichard Bernstein Advisors American Industrial Renaissance Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume567,721

30 Day Avg. Volume598,416

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

107.96

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering53

AIRR Summary

The First Trust RBA American Industrial Renaissance ETF (AIRR) is an investment fund that focuses on U.S. industrial companies benefiting from the revival of manufacturing and infrastructure development. It tracks the Richard Bernstein Advisors American Industrial Renaissance Index and includes well-known companies like EMCOR Group and Comfort Systems. Investors might consider AIRR for its potential to grow alongside the revitalization of the U.S. industrial sector, offering exposure to both established and innovative firms. However, since it is heavily focused on industrials, its performance can be impacted by economic downturns or reduced infrastructure spending.

How much will it cost me?The First Trust RBA American Industrial Renaissance ETF (AIRR) has an expense ratio of 0.7%, which means you’ll pay $7 per year for every $1,000 invested. This is higher than average because it is actively managed, focusing on a specific niche within the industrials sector to capture growth opportunities. Active management typically involves more research and trading, which increases costs.

What would affect this ETF?AIRR could benefit from increased government spending on infrastructure projects and the growing focus on revitalizing U.S. manufacturing, which aligns with its industrial sector exposure. However, rising interest rates or economic slowdowns could negatively impact industrial companies, as borrowing costs and demand for construction and manufacturing may decline. Additionally, regulatory changes or trade tensions could pose risks to its U.S.-focused holdings.

AIRR Top 10 Holdings

The AIRR ETF is firmly rooted in the U.S. industrial sector, with standout performers like Sterling Infrastructure and BWX Technologies driving gains thanks to strong financial results and strategic growth initiatives. Comfort Systems has also shown steady upward momentum, benefiting from a robust backlog and bullish market sentiment. On the flip side, Owens Corning and Saia are holding the fund back, with mixed earnings and valuation concerns dampening their outlook. With nearly 90% exposure to industrials, this fund is a clear bet on the American manufacturing revival, though its concentrated sector focus may amplify risks tied to economic cycles.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
FIX	Comfort Systems	4.17%	$255.19M	$34.63B	150.82%	80 Outperform
EME	EMCOR Group	3.98%	$243.44M	$33.49B	74.91%	78 Outperform
MTZ	MasTec	3.67%	$224.34M	$16.72B	71.28%	73 Outperform
STRL	Sterling Infrastructure	3.58%	$219.17M	$11.53B	146.91%	78 Outperform
CHRW	CH Robinson	3.58%	$218.65M	$14.89B	18.47%	60 Neutral
BWXT	BWX Technologies	3.49%	$213.10M	$18.58B	64.86%	71 Outperform
KTOS	Kratos Defense	3.32%	$202.91M	$15.39B	274.71%	64 Neutral
OC	Owens Corning	3.27%	$200.14M	$10.68B	-31.10%	66 Neutral
CNM	Core & Main	3.27%	$199.99M	$10.74B	19.32%	69 Neutral
HII	Huntington Ingalls	3.21%	$196.36M	$11.77B	18.24%	79 Outperform

AIRR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

94.66

Positive

100DMA

89.36

Positive

200DMA

81.39

Positive

Market Momentum

MACD

1.18

Negative

RSI

58.67

Neutral

STOCH

83.34

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AIRR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 97.39, equal to the 50-day MA of 94.66, and equal to the 200-day MA of 81.39, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 83.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIRR.

AIRR Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
AIRR	―	―	$6.12B	0.70%	71 Outperform
PPA	―	―	$6.88B	0.58%	71 Outperform
VIS	―	―	$6.36B	0.09%	70 Outperform
FXR	―	―	$1.85B	0.61%	70 Outperform
IYJ	―	―	$1.69B	0.38%	73 Outperform
FIDU	―	―	$1.49B	0.08%	71 Outperform

Performance Comparison

AIRR

First Trust RBA American Industrial Renaissance ETF

99.53

22.99

30.04%

PPA

Invesco Aerospace & Defense ETF

―

VIS

Vanguard Industrials ETF

―

FXR

First Trust Industrials/Producer Durables AlphaDEX Fund

―

IYJ

iShares U.S. Industrials ETF

―

FIDU

Fidelity MSCI Industrial Index 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.

Disclaimer

This 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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