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FCFY - ETF AI Analysis

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FCFY

First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)

Rating:70Neutral
Price Target:
FCFY’s rating suggests it is a solid but not top-tier ETF, supported by strong holdings like Qualcomm and NetApp, which show healthy financial performance, positive earnings calls, and growth in areas such as cloud, AI, and key technology segments. However, weaker names like Centene and GoDaddy, with profitability and financial stability concerns, along with several holdings showing bearish or cautious technical signals and potential overvaluation, temper the overall score. The main risk factor is the fund’s exposure to multiple companies with valuation and leverage concerns, which could increase volatility if growth expectations are not met.
Positive Factors
Diversified Across Many Sectors
The fund spreads its investments across a wide range of industries, which can help reduce the impact if any one sector struggles.
Focused U.S. Exposure
Almost all holdings are in U.S. companies, which may appeal to investors who want targeted exposure to the U.S. market.
Meaningful Technology Allocation
A large portion of the portfolio is in technology stocks, giving investors exposure to a sector that can offer strong growth over time.
Negative Factors
Weak Recent Performance
The ETF’s returns so far this year have been negative, which may concern investors looking for stronger recent momentum.
Underperforming Top Holdings
Many of the largest positions have shown weak performance this year, which has likely weighed on the fund’s overall results.
Relatively High Expense Ratio
The fund charges a higher fee than many broad index ETFs, which can slowly reduce net returns over time.

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

FCFY Summary

The First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) tracks an index of S&P 500 companies that generate strong free cash flow, meaning they tend to bring in more cash than they spend. It mainly holds large, well-known U.S. businesses across many sectors, including technology, health care, and financials. Examples of companies in the fund are Adobe and Comcast. An investor might choose this ETF for broad U.S. stock market exposure with a focus on financially solid companies. However, it can still go up and down with the overall stock market.
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

This ETF leans heavily on U.S. tech and digital infrastructure, with names like Qualcomm and NetApp doing much of the heavy lifting as their shares have been steadily rising on the back of strong cloud and AI demand. Centene has also been a bright spot, giving the fund a boost from the health care side. On the flip side, GoDaddy, Comcast, and Trade Desk have been losing steam, dragging on returns as their stock trends remain weak. Overall, it’s a U.S.-centric, cash-flow-focused portfolio with a clear tilt toward technology.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Centene4.08%$56.41K$33.51B102.82%
58
Neutral
Skyworks Solutions3.42%$47.36K$9.41B-18.74%
70
Outperform
Qualcomm3.10%$42.89K$185.77B17.96%
80
Outperform
NetApp3.10%$42.85K$30.20B55.02%
76
Outperform
HP3.06%$42.40K$20.06B-11.01%
61
Neutral
Omnicom Group2.67%$36.99K$22.41B8.21%
73
Outperform
GoDaddy2.65%$36.73K$11.72B-51.64%
60
Neutral
Comcast2.52%$34.81K$84.98B-34.97%
74
Outperform
Gen Digital2.44%$33.81K$16.07B-10.55%
67
Neutral
Workday2.26%$31.32K$33.44B-42.62%
73
Outperform

FCFY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
27.34
Positive
100DMA
26.61
Positive
200DMA
26.74
Positive
Market Momentum
MACD
0.08
Negative
RSI
57.07
Neutral
STOCH
77.99
Neutral
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 27.30, equal to the 50-day MA of 27.34, and equal to the 200-day MA of 26.74, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCFY.

FCFY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.37M0.60%
70
Neutral
$97.16M0.45%
69
Neutral
$96.55M0.80%
67
Neutral
$93.97M0.35%
73
Outperform
$92.27M0.93%
63
Neutral
$88.28M0.49%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCFY
First Trust S&P 500 Diversified Free Cash Flow ETF
27.78
2.55
10.11%
ACEP
ARS Core Equity Portfolio ETF
FCUS
Pinnacle Focused Opportunities ETF
JOYT
JPMorgan Equity and Options Total Return ETF
EGGQ
NestYield Visionary ETF
JHDG
John Hancock Hedged Equity 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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