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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 that reflects a portfolio anchored by strong, high-quality companies. Major holdings like Qualcomm, IBM, Accenture, and ServiceNow support the fund’s quality through robust financial performance, growth in areas like AI and cloud, and generally positive business trends, even though some face valuation concerns. On the weaker side, names like Starbucks and Seagate introduce more risk due to leverage, profitability and valuation issues, and the main risk factor for FTCE is its concentration in large, growth-oriented companies where high valuations and occasional bearish technical signals can increase volatility.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, which helps reduce the impact if any single industry runs into trouble.
Strong Overall Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating that its strategy and holdings have generally been working well for investors.
Several Strongly Performing Top Holdings
Key positions such as Seagate, Intel, Starbucks, and Eli Lilly have shown strong or steady performance, providing important support to the fund’s returns.
Negative Factors
High U.S. Market Concentration
Almost all of the fund’s assets are invested in U.S. companies, offering little geographic diversification if other regions perform better.
Notable Weakness in Some Top Holdings
Several large positions, including Booking Holdings, IBM, AppLovin, and ServiceNow, have shown weak recent performance, which can drag on the fund’s results.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, meaning more of the returns are used to cover fees instead of going to investors.

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

FTCE Summary

FTCE is an exchange-traded fund that follows the Bloomberg New Constructs Core Earnings Leaders Index, focusing on U.S. companies with strong, consistent profits. It spreads your money across many sectors, with a big tilt toward technology and other major industries. Well-known holdings include Qualcomm and Starbucks, along with other large, established businesses. Someone might invest in FTCE to get broad diversification across the U.S. stock market while emphasizing companies with solid earnings. A key risk is that it is heavily invested in stocks, especially tech, so its value can rise and fall sharply with the overall market.
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 and digital infrastructure, with names like ServiceNow and Seagate doing much of the heavy lifting as their shares have been rising on upbeat earnings and AI-related optimism. Intel has also been climbing, helping offset some bumps in the road. On the softer side, Accenture and IBM have been lagging, acting like a bit of a headwind despite solid business fundamentals. Consumer and financial leaders such as Starbucks and Visa add balance, but this is still very much a U.S.-centric, tech-tilted story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Booking Holdings4.40%$3.88M$156.96B-10.40%
63
Neutral
ServiceNow4.36%$3.85M$130.08B-25.46%
75
Outperform
Qualcomm4.02%$3.55M$171.94B2.48%
80
Outperform
Seagate Tech3.95%$3.49M$191.83B391.47%
68
Neutral
Eli Lilly & Co3.87%$3.42M$1.12T62.50%
72
Outperform
Starbucks3.83%$3.38M$123.68B21.86%
56
Neutral
International Business Machines3.82%$3.38M$216.57B-6.45%
79
Outperform
Visa3.74%$3.30M$716.76B8.52%
70
Outperform
Accenture3.53%$3.12M$110.99B-26.85%
79
Outperform
Intel2.97%$2.62M$463.66B269.39%
64
Neutral

FTCE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
27.35
Positive
100DMA
26.75
Positive
200DMA
25.70
Positive
Market Momentum
MACD
0.18
Positive
RSI
59.96
Neutral
STOCH
59.72
Neutral
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 27.75, equal to the 50-day MA of 27.35, and equal to the 200-day MA of 25.70, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 is Neutral, 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
$87.77M0.60%
71
Outperform
$96.64M0.76%
63
Neutral
$92.08M0.85%
68
Neutral
$91.67M0.59%
70
Outperform
$90.65M0.75%
69
Neutral
$89.77M0.65%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTCE
First Trust New Constructs Core Earnings Leaders ETF
28.03
5.27
23.15%
BUZZ
VanEck Social Sentiment ETF
STNC
Stance Equity ESG Large Cap Core ETF
PFOE
Pathfinder Focused Opportunities ETF
SOVF
Sovereign's Capital Flourish Fund
YALL
God Bless America 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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