FCFY - ETF AI Analysis
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First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)
Rating:71Outperform
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered positive returns so far this year, showing that its strategy has been working in the current market.
Leading Holding With Strong Gains
Centene, the fund’s largest position, has shown strong performance, which helps support the ETF’s overall results.
Broad Sector Diversification
The ETF spreads its investments across many sectors, including technology, financials, health care, and consumer-related industries, which helps reduce reliance on any single area of the market.
Negative Factors
High U.S. Market Concentration
Almost all of the ETF’s holdings are in U.S. companies, which means performance is heavily tied to the health of the U.S. economy and stock market.
Mixed Performance Among Top Holdings
Several of the largest positions, such as GoDaddy, Comcast, and Workday, have shown weak or negative performance, which can drag on the fund’s returns.
Above-Average Expense Ratio
The ETF charges a relatively high fee compared with many broad index funds, which slightly reduces the net return investors receive over time.
FCFY vs. SPDR S&P 500 ETF (SPY)
AUM1.49M
RegionNorth America
Expense Ratio0.60%
Beta0.95
IssuerFirst Trust
Inception DateAug 23, 2023
Dividend Yield1.35%
Asset ClassEquity
Index TrackedS&P 500 Sector-Neutral FCF Index - Benchmark TR Gross
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume366
30 Day Avg. Volume509
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
32.91Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering99
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FCFY Summary
The First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) follows the S&P 500 Sector-Neutral FCF Index, focusing on large U.S. companies that generate strong, steady cash from their businesses. It holds well-known names like Qualcomm and Comcast, and spreads investments across many sectors, with a tilt toward technology. Someone might invest in this ETF to get diversified exposure to financially solid, established companies that may offer a mix of stability and growth. A key risk is that it is heavily exposed to U.S. stocks and tech, so its value can rise and fall sharply with the overall stock market and technology sector.
How much will it cost me?The expense ratio for the First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than the average for ETFs because it is actively managed, focusing on selecting companies with strong free cash flow rather than simply tracking an index.
What would affect this ETF?The FCFY ETF, with its strong focus on large-cap U.S. companies and significant exposure to the technology sector, could benefit from continued innovation and growth in tech, as well as stable economic conditions that support consumer spending and corporate profitability. However, it may face challenges from rising interest rates, which can negatively impact growth-oriented sectors like technology, and potential regulatory changes targeting large-cap firms or specific industries. Broader economic downturns or reduced corporate free cash flow generation could also pose risks to the fund's performance.
FCFY Top 10 Holdings
FCFY’s story is all about cash-rich U.S. tech names setting the tone. NetApp and Workday have been rising, with NetApp in particular acting like a quiet engine for the fund, while Adobe’s recent rebound helps offset earlier weakness. HP is another steady contributor, adding some old-school tech ballast. On the flip side, GoDaddy has been lagging this year, and Comcast has lost some steam, modestly weighing on returns. Overall, the ETF leans heavily toward technology and communication services, with performance driven largely by U.S.-based digital and software players.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| HP | 3.99% | $61.23K | $29.43B | 12.40% | 61 Neutral | |
| Centene | 3.73% | $57.25K | $33.12B | 115.84% | 58 Neutral | |
| Skyworks Solutions | 3.69% | $56.63K | $11.14B | -1.38% | 70 Outperform | |
| NetApp | 3.17% | $48.62K | $36.45B | 50.74% | 76 Outperform | |
| Workday | 2.90% | $44.44K | $47.19B | -15.14% | 73 Outperform | |
| GoDaddy | 2.83% | $43.46K | $12.83B | -31.58% | 60 Neutral | |
| Comcast | 2.57% | $39.44K | $94.00B | -21.32% | 74 Outperform | |
| Gen Digital | 2.54% | $38.96K | $18.35B | 4.00% | 67 Neutral | |
| Qualcomm | 2.53% | $38.81K | $177.22B | 9.72% | 80 Outperform | |
| Omnicom Group | 2.49% | $38.25K | $22.67B | 4.66% | 73 Outperform |
FCFY Technical Analysis
Positive
―
Price Trends
29.20
Positive
28.20
Positive
27.42
Positive
Market Momentum
0.25
Positive
49.16
Neutral
4.19
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FCFY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 30.32, equal to the 50-day MA of 29.20, and equal to the 200-day MA of 27.42, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 4.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCFY.
FCFY Peer Comparison
Comparison Results
Performance Comparison
FCFY
First Trust S&P 500 Diversified Free Cash Flow ETF
29.91
3.13
11.69%
PRMR
PeakShares RMR Prime Equity ETF
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―
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ALTL
Pacer Lunt Large Cap Alternator ETF
―
―
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SPXE
ProShares S&P 500 Ex-Energy ETF
―
―
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FCUS
Pinnacle Focused Opportunities ETF
―
―
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EGGQ
NestYield Visionary ETF
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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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