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FTXH - ETF AI Analysis

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FTXH

First Trust Nasdaq Pharmaceuticals ETF (FTXH)

Rating:72Outperform
Price Target:
FTXH, the First Trust Nasdaq Pharmaceuticals ETF, earns a solid overall rating largely because many of its biggest holdings—like Merck, Johnson & Johnson, Bristol-Myers Squibb, Vertex, and Amgen—show strong financial performance, positive earnings call sentiment, and promising drug pipelines that support long-term growth. However, weaker names such as Viatris and Cardinal Health, which face financial and valuation challenges, along with common risks like high debt levels and rich valuations across several holdings, slightly hold back the fund’s rating and highlight the sector’s sensitivity to financial stability and pricing pressures.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past few months, which indicates positive recent momentum.
Leading Pharmaceutical Holdings
Many of the top holdings, including well-known drug makers, have delivered solid year-to-date gains that support the fund’s overall results.
Focused Exposure to Health Care
Concentrating almost entirely on U.S. health care companies gives investors targeted access to a major defensive sector tied to long-term demand for medicines.
Negative Factors
High Sector Concentration
With nearly all assets in the health care sector, the fund is vulnerable if pharmaceuticals or health care stocks fall out of favor.
Limited Geographic Diversification
Almost all holdings are U.S.-based, so investors get little protection from markets in other regions if the U.S. market weakens.
Above-Average Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of staying with investors.

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

FTXH Summary

FTXH is the First Trust Nasdaq Pharmaceuticals ETF, which follows the Nasdaq US Smart Pharmaceuticals Index. It focuses on U.S. drugmakers and health care companies, holding well-known names like Eli Lilly and Johnson & Johnson. This fund gives investors a simple way to invest in the growth of new medicines, treatments, and drug research without having to pick individual stocks. Someone might choose this ETF for targeted exposure to the pharmaceutical industry and potential long-term growth. However, it is heavily concentrated in health care and drug companies, so its price can swing with changes in drug approvals, regulation, and the overall stock market.
How much will it cost me?The First Trust Nasdaq Pharmaceuticals ETF (FTXH) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a specialized sector, which typically involves more research and management costs.
What would affect this ETF?The FTXH ETF could benefit from advancements in pharmaceutical research, including breakthroughs in drug development and personalized medicine, as well as increased demand for innovative health care solutions in the U.S. However, it may face challenges from regulatory changes, patent expirations, or economic downturns that could impact the profitability of its top holdings like AbbVie, Johnson & Johnson, and Merck.

FTXH Top 10 Holdings

FTXH is essentially a bet on Big Pharma, with heavy exposure to U.S. giants like Eli Lilly, AbbVie, Johnson & Johnson, Merck, and Bristol-Myers Squibb. Recent strength in AbbVie, Merck, and Bristol-Myers has been helping to pull the fund higher, while Eli Lilly’s mixed near-term performance means one of its key engines is occasionally sputtering. Biogen and Cardinal Health have been more uneven, adding some bumps to the ride. Overall, this is a concentrated, U.S.-focused pharmaceuticals play, driven largely by a handful of industry leaders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
AbbVie7.39%$68.23M$454.79B28.54%
66
Neutral
Eli Lilly & Co7.29%$67.33M$1.09T50.70%
72
Outperform
Merck & Company6.99%$64.48M$320.56B64.21%
80
Outperform
Bristol-Myers Squibb6.93%$63.99M$132.45B47.66%
78
Outperform
Johnson & Johnson6.87%$63.36M$616.50B53.20%
78
Outperform
Viatris3.97%$36.59M$20.84B99.32%
60
Neutral
Biogen3.61%$33.33M$30.72B53.81%
74
Outperform
Amgen3.34%$30.79M$209.21B29.74%
77
Outperform
Cardinal Health3.31%$30.52M$53.18B47.46%
66
Neutral
Vertex Pharmaceuticals3.24%$29.88M$122.26B3.24%
78
Outperform

FTXH Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
36.97
Positive
100DMA
35.42
Positive
200DMA
33.99
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTXH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 38.73, equal to the 50-day MA of 36.97, and equal to the 200-day MA of 33.99, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTXH.

FTXH Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$920.98M0.60%
72
Outperform
$769.37M0.40%
71
Outperform
$495.37M0.35%
56
Neutral
$477.47M0.57%
69
Neutral
$381.73M0.51%
65
Neutral
$287.14M0.58%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTXH
First Trust Nasdaq Pharmaceuticals ETF
38.89
12.82
49.18%
RSPH
Invesco S&P 500 Equal Weight Health Care ETF
XPH
SPDR S&P Pharmaceuticals ETF
PJP
Invesco Dynamic Pharmaceuticals ETF
PINK
Simplify Health Care ETF
PBE
Invesco Dynamic Biotechnology & Genome 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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