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FTCE - ETF AI Analysis

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FTCE

First Trust New Constructs Core Earnings Leaders ETF (FTCE)

Rating:71Outperform
Price Target:
FTCE, the First Trust New Constructs Core Earnings Leaders ETF, has a solid overall rating driven mainly by high-quality holdings like Qualcomm and IBM, which show strong financial performance, positive earnings call sentiment, and supportive technical trends. Other major positions such as Meta Platforms and Eli Lilly also add strength through robust growth and strategic focus on AI and healthcare, though their high valuations and leverage introduce some caution. Weaker contributors like Starbucks, with declining profitability and bearish technical signals, highlight that key risks for the fund include exposure to highly valued, leveraged companies and some stocks with negative price momentum.
Positive Factors
Broad Sector Diversification
The ETF spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.
Healthy Recent Short-Term Performance
The fund has shown strong gains over the past month, indicating improving short-term momentum.
Mix of Established and Growth-Oriented Holdings
Top positions include well-known blue-chip companies and growth names, offering a balance of stability and upside potential.
Negative Factors
High U.S. Concentration
Almost all assets are invested in U.S. companies, providing little geographic diversification if the U.S. market weakens.
Several Weak Top Holdings
Many of the largest positions have shown weak year-to-date performance, which can drag on the fund’s overall returns.
Relatively High Expense Ratio
The fund’s fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

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

FTCE Summary

FTCE is an ETF that follows the Bloomberg New Constructs Core Earnings Leaders Index, focusing on U.S. companies with strong, reliable profits. It invests across many sectors, with a tilt toward technology, and holds well-known names like Meta Platforms and JPMorgan Chase. Someone might consider this fund to get broad exposure to the U.S. stock market while emphasizing companies with healthier earnings, which can be appealing for long-term growth and diversification. A key risk is that it is still a stock market fund, so its value can rise and fall significantly with overall market conditions.
How much will it cost me?The First Trust New Constructs Core Earnings Leaders ETF (FTCE) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on selecting companies with strong core earnings using advanced analytical techniques.
What would affect this ETF?FTCE's focus on companies with strong core earnings and its significant exposure to the technology sector could benefit from continued innovation and growth in tech, especially if consumer demand for advanced technologies remains high. However, the ETF's reliance on U.S.-based companies makes it vulnerable to domestic economic challenges, such as rising interest rates or regulatory changes affecting key sectors like technology and financials. Additionally, any downturn in global economic conditions or disruptions in supply chains could negatively impact its top holdings, including major players like Apple and Nvidia.

FTCE Top 10 Holdings

FTCE is leaning heavily into U.S. tech, with names like Seagate and Qualcomm setting much of the tone, and Seagate in particular giving the fund a lift as its shares have been on a strong upswing. CrowdStrike is another rising star, adding momentum from the cybersecurity corner. On the flip side, Meta has been losing steam, while Booking Holdings and AppLovin have been dragging performance with weaker recent moves. With a clear tilt toward technology and a supporting cast in financials and health care, this is very much a U.S.-centric, growth-leaning story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
International Business Machines4.77%$4.01M$272.12B5.41%
79
Outperform
Qualcomm4.33%$3.64M$185.77B17.96%
80
Outperform
CrowdStrike Holdings4.24%$3.57M$197.52B53.33%
67
Neutral
Seagate Tech4.11%$3.45M$183.90B485.12%
68
Neutral
Eli Lilly & Co4.06%$3.41M$1.14T58.88%
72
Outperform
Meta Platforms4.05%$3.40M$1.48T-14.58%
76
Outperform
JPMorgan Chase3.64%$3.06M$896.22B19.96%
72
Outperform
Starbucks3.36%$2.83M$118.84B9.04%
56
Neutral
Booking Holdings2.92%$2.45M$143.01B-20.38%
63
Neutral
AppLovin2.73%$2.30M$177.06B57.73%
74
Outperform

FTCE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
26.86
Positive
100DMA
25.63
Positive
200DMA
25.15
Positive
Market Momentum
MACD
0.14
Negative
RSI
59.06
Neutral
STOCH
83.67
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTCE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 27.16, equal to the 50-day MA of 26.86, and equal to the 200-day MA of 25.15, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 83.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTCE.

FTCE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$83.37M0.60%
71
Outperform
$96.79M0.89%
72
Outperform
$96.27M0.75%
68
Neutral
$94.05M0.49%
69
Neutral
$91.70M0.65%
66
Neutral
$91.27M0.80%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTCE
First Trust New Constructs Core Earnings Leaders ETF
27.58
5.35
24.07%
BAMD
Brookstone Dividend Stock ETF
SOVF
Sovereign's Capital Flourish Fund
FDRS
Founder-Led ETF
YALL
God Bless America ETF
FFTY
Innovator IBD 50 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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