GRID - ETF AI Analysis

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First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID)

Rating:64Neutral

Price Target:―

GRID, the First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index ETF, earns a solid overall rating driven mainly by strong, financially healthy holdings like ABB, Quanta Services, National Grid, nVent Electric, and Hubbell, all benefiting from positive earnings and growth outlooks. The fund is held back somewhat by names such as E.ON and Prysmian, where mixed financial performance, cash flow challenges, and neutral-to-bearish technical signals add caution. The main risk factor is the ETF’s concentration in grid and infrastructure-related companies, which can amplify the impact of sector-specific issues like overvaluation, leverage, and segment challenges across multiple holdings.

Positive Factors

Strong Recent Performance

The ETF has shown strong gains over the year so far and in recent months, indicating solid momentum.

Leading Infrastructure Holdings

Several of the largest positions, including major industrial and grid-focused companies, have delivered strong returns, helping drive the fund’s overall results.

Global Diversification

Holdings spread across the U.S. and multiple European and Asian countries help reduce the impact of weakness in any single market.

Negative Factors

Above-Average Expense Ratio

The fund’s fee is on the higher side for an ETF, which can slightly reduce long-term returns compared with lower-cost options.

Sector Concentration in Industrials and Related Areas

A large share of assets is tied to industrial and grid-related companies, which can hurt performance if this segment faces a downturn.

Meaningful Single-Stock Weights

Several individual holdings each make up a noticeable portion of the portfolio, increasing the impact if any of these companies stumble.

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

AUM11.42B

RegionGlobal

Expense Ratio0.56%

Beta1.05

IssuerFirst Trust

Inception DateNov 16, 2009

Dividend Yield0.8%

Asset ClassEquity

Index TrackedNASDAQ OMX Clean Edge Smart Grid Infrastr (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume541,069

30 Day Avg. Volume765,941

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

208.16

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering106

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

GRID Summary

GRID is an ETF that follows the Nasdaq Clean Edge Smart Grid Infrastructure Index, focusing on companies that help modernize energy systems and power grids. It holds firms involved in smart meters, energy storage, and connecting renewable energy to the grid. Well-known holdings include Eaton and Nvidia. An investor might choose GRID to tap into the long-term growth of cleaner, more efficient energy infrastructure while spreading money across many companies and countries. A key risk is that it is concentrated in the clean energy and infrastructure theme, so its price can swing more than the overall market.

How much will it cost me?The expense ratio for GRID is 0.56%, which means you’ll pay $5.60 per year for every $1,000 invested. This is higher than average because GRID is a specialized ETF focused on clean energy and smart grid technologies, which typically require more active management compared to broad market index ETFs.

What would affect this ETF?GRID's focus on clean energy and smart grid technologies positions it to benefit from global trends toward renewable energy adoption and infrastructure modernization, supported by increasing government incentives and ESG-focused investments. However, the ETF could face challenges from rising interest rates, which may increase borrowing costs for infrastructure projects, and potential regulatory changes or geopolitical tensions that could impact its global holdings. Its heavy exposure to industrials and utilities makes it sensitive to economic cycles and energy sector volatility.

GRID Top 10 Holdings

GRID is riding a powerful wave in industrial clean-energy infrastructure, with names like Quanta Services, Prysmian, nVent, Eaton, and ABB doing most of the heavy lifting as their shares keep climbing on strong growth and grid-upgrade demand. Schneider Electric and Johnson Controls are also pulling their weight, adding steady momentum. On the flip side, European utilities like National Grid and E.ON are more of a speed bump than a roadblock, lagging a bit. Overall, the fund is globally diversified but clearly leans into industrial smart-grid champions rather than traditional utilities.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ETN	Eaton	8.63%	$982.62M	$155.32B	5.64%	75 Outperform
JCI	Johnson Controls	8.29%	$943.39M	$85.70B	28.91%	70 Outperform
SU	Schneider Electric	8.24%	$938.08M	€148.21B	9.11%	62 Neutral
ABB	ABB Ltd	7.92%	$902.25M	kr1.70T	49.69%	78 Outperform
PWR	Quanta Services	7.63%	$869.08M	$94.32B	55.84%	78 Outperform
NG	National Grid	4.54%	$516.60M	£62.55B	18.64%	76 Outperform
EOAN	E.ON SE	4.48%	$509.88M	€50.26B	19.80%	61 Neutral
PRY	Prysmian SpA	3.59%	$408.61M	€36.63B	92.55%	65 Neutral
NVT	nVent Electric	2.83%	$322.00M	$25.05B	104.08%	76 Outperform
HUBB	Hubbell B	2.63%	$299.41M	$25.82B	13.57%	77 Outperform

GRID Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

189.06

Negative

100DMA

181.49

Negative

200DMA

169.12

Positive

Market Momentum

MACD

-2.84

Positive

RSI

38.39

Neutral

STOCH

20.78

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For GRID, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 185.03, equal to the 50-day MA of 189.06, and equal to the 200-day MA of 169.12, indicating a neutral trend. The MACD of -2.84 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 20.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRID.

GRID Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
GRID	―	―	$11.42B	0.56%	64 Neutral
SMH	―	―	$68.92B	0.35%	76 Outperform
CIBR	―	―	$14.33B	0.58%	71 Outperform
IGF	―	―	$10.87B	0.39%	65 Neutral
NFRA	―	―	$3.01B	0.47%	66 Neutral
BKGI	―	―	$1.19B	0.55%	68 Neutral

Performance Comparison

GRID

First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index

177.08

35.40

24.99%

SMH

VanEck Semiconductor ETF

―

CIBR

First Trust NASDAQ Cybersecurity ETF

―

IGF

iShares Global Infrastructure ETF

―

NFRA

FlexShares STOXX Global Broad Infrastructure Index Fund

―

BKGI

BNY Mellon Global Infrastructure Income 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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