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First Trust Dow 30 Equal Weight ETF (EDOW)

Rating:73Outperform

Price Target:

$45.00

The First Trust Dow 30 Equal Weight ETF (EDOW) has a solid overall rating, driven by strong contributions from holdings like American Express and Cisco. American Express stands out for its consistent revenue and profit growth, efficient cash flow management, and positive earnings call sentiment, while Cisco benefits from growth in AI infrastructure and strategic innovation. However, holdings such as Caterpillar and UnitedHealth may have slightly held back the rating due to challenges like declining revenue and increased medical costs. The fund's diversified holdings reduce risk, but investors should note potential sector-specific vulnerabilities.

Positive Factors

Strong Top Holdings

Several key positions, such as Caterpillar and IBM, have delivered strong year-to-date performance, supporting the fund’s overall returns.

Sector Diversification

The ETF spreads its investments across nine sectors, reducing the risk of a downturn in any single industry.

Healthy Year-to-Date Performance

The fund has shown solid year-to-date growth, indicating resilience in its portfolio.

Negative Factors

High Geographic Concentration

The ETF is heavily focused on U.S. companies, offering little exposure to international markets.

Lagging Holdings

Some top holdings, like UnitedHealth and Salesforce, have underperformed year-to-date, dragging on overall performance.

Moderate Expense Ratio

The ETF’s expense ratio is higher than some low-cost alternatives, which could slightly reduce investor returns over time.

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

AUM227.39M

RegionNorth America

Expense Ratio0.50%

Beta0.80

IssuerFirst Trust

Inception DateAug 08, 2017

Dividend Yield1.27%

Asset ClassEquity

Index TrackedDow Jones Industrial Average Equal Weight Index (USD)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume12,961

30 Day Avg. Volume10,594

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

45.13

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering31

EDOW Summary

The First Trust Dow 30 Equal Weight ETF (Ticker: EDOW) is an investment fund that tracks the Dow Jones Industrial Average but gives equal weight to all 30 companies in the index. This means no single stock dominates the portfolio, offering balanced exposure to large, well-established U.S. companies. Some of its top holdings include Apple and Caterpillar, which are leaders in technology and industrial sectors. Investors might consider EDOW for diversification and steady growth potential from blue-chip stocks. However, since it focuses on large-cap U.S. companies, its performance can fluctuate with the overall market.

How much will it cost me?The First Trust Dow 30 Equal Weight ETF (EDOW) has an expense ratio of 0.50%, which means you’ll pay $5 per year for every $1,000 invested. This is higher than average for ETFs because it uses an actively managed strategy to equally weight the Dow 30 stocks, requiring more oversight compared to passively managed funds. It offers a unique approach to diversification, but the higher cost reflects the added management involved.

What would affect this ETF?The First Trust Dow 30 Equal Weight ETF (EDOW) could benefit from positive trends in technology and healthcare sectors, which make up a significant portion of its holdings, especially as innovation and demand in these areas continue to grow. However, economic challenges such as rising interest rates or a slowdown in consumer spending could negatively impact financial and consumer-focused companies within the ETF. Additionally, regulatory changes or geopolitical tensions affecting U.S.-based large-cap companies may influence overall performance.

EDOW Top 10 Holdings

The First Trust Dow 30 Equal Weight ETF (EDOW) offers a balanced approach to U.S. blue-chip stocks, but recent performance has been a mixed bag. Tech giants like Apple and Salesforce are losing steam, with short-term gains overshadowed by valuation concerns and market volatility. On the brighter side, industrial stalwart Caterpillar has been steadily climbing, while healthcare leaders like Johnson & Johnson provide stability with consistent growth. Financial names like American Express are rising, buoyed by strong earnings and cash flow management. With a diverse sector mix, the fund leans heavily on technology and financials, making it a play on U.S. market resilience.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CAT	Caterpillar	4.00%	$9.15M	$244.89B	34.94%	73 Outperform
IBM	International Business Machines	3.92%	$8.95M	$287.39B	47.05%	77 Outperform
AAPL	Apple	3.81%	$8.71M	$3.90T	15.17%	78 Outperform
AXP	American Express	3.59%	$8.22M	$246.31B	33.23%	81 Outperform
MMM	3M	3.52%	$8.05M	$89.51B	29.25%	67 Neutral
JNJ	Johnson & Johnson	3.48%	$7.95M	$458.73B	17.76%	78 Outperform
NVDA	Nvidia	3.47%	$7.93M	$4.53T	36.27%	81 Outperform
MSFT	Microsoft	3.41%	$7.80M	$3.89T	24.60%	83 Outperform
UNH	UnitedHealth	3.39%	$7.75M	$328.31B	-35.25%	78 Outperform
CRM	Salesforce	3.38%	$7.74M	$242.60B	-13.04%	75 Outperform

EDOW Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

39.75

Positive

100DMA

38.94

Positive

200DMA

37.52

Positive

Market Momentum

MACD

0.29

Negative

RSI

67.98

Neutral

STOCH

94.11

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EDOW, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 40.09, equal to the 50-day MA of 39.75, and equal to the 200-day MA of 37.52, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 94.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDOW.

EDOW Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
EDOW	―	―	$227.39M	0.50%	73 Outperform
SEIM	―	―	$969.37M	0.15%	74 Outperform
VOTE	―	―	$932.76M	0.05%	75 Outperform
ONEY	―	―	$831.12M	0.20%	69 Neutral
AVLC	―	―	$811.70M	0.15%	74 Outperform
DSPY	―	―	$777.73M	0.18%	74 Outperform

Performance Comparison

EDOW

First Trust Dow 30 Equal Weight ETF

40.97

5.81

16.52%

SEIM

SEI Enhanced U.S. Large Cap Momentum Factor ETF

―

VOTE

Engine No. 1 Transform 500 ETF

―

ONEY

SPDR Russell 1000 Yield Focus ETF

―

AVLC

Avantis U.S. Large Cap Equity ETF

―

DSPY

Tema S&P 500 Historical Weight ETF Strategy

―

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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