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PHEQ - ETF AI Analysis

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PHEQ

Parametric Hedged Equity ETF (PHEQ)

Rating:76Outperform
Price Target:
PHEQ, the Parametric Hedged Equity ETF, has a solid overall rating, largely driven by its sizable positions in high-quality tech leaders like Apple, Microsoft, and Alphabet, which benefit from strong financial performance, growth in AI and cloud, and generally supportive technical trends. These strengths are partly offset by holdings such as Amazon, Meta, JPMorgan, and Eli Lilly, where high valuations, cash flow and leverage challenges, and mixed technical signals introduce more caution. The main risk factor is the fund’s heavy concentration in large technology and AI-focused companies, which can increase sensitivity to shifts in tech sector sentiment and valuation.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, showing that its strategy has worked well in the current market.
Leading Technology Holdings
Several of the largest positions in major technology companies have shown strong performance, helping drive the fund’s returns.
Broad Sector Diversification
The ETF spreads its investments across many sectors, which can help reduce the impact if any single industry runs into trouble.
Negative Factors
Heavy Tilt Toward Technology
A large portion of the portfolio is in technology stocks, which increases the fund’s sensitivity to swings in that sector.
Underperforming Mega-Cap Holdings
Some of the big-name top holdings have shown weak performance recently, which can drag on overall returns.
Limited International Exposure
The ETF is almost entirely invested in U.S. companies, offering little diversification across different global markets.

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

PHEQ Summary

The Parametric Hedged Equity ETF (PHEQ) invests mainly in large U.S. companies and uses a built-in hedge to try to soften big market drops. It doesn’t track a specific index, but follows a theme of broad large-cap exposure with risk management. The fund is heavily invested in technology and other major sectors, and holds well-known names like Apple, Nvidia, Microsoft, and Amazon. Someone might invest in PHEQ for growth potential from leading companies while seeking some downside protection. A key risk is that it still owns stocks, so its value can go up and down with the overall stock market.
How much will it cost me?The Parametric Hedged Equity ETF (PHEQ) has an expense ratio of 0.29%, meaning you’ll pay $2.90 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it uses an active hedging strategy to manage risk and capture potential upside, which requires more management compared to passively managed funds.
What would affect this ETF?The Parametric Hedged Equity ETF (PHEQ) could benefit from continued growth in the technology sector, which makes up a significant portion of its holdings, as well as strong performance from top companies like Nvidia, Microsoft, and Apple. However, potential risks include rising interest rates or economic slowdowns, which could negatively impact large-cap stocks and sectors like consumer cyclical and financials. Regulatory changes affecting major tech firms or broader market volatility could also influence the ETF's performance.

PHEQ Top 10 Holdings

PHEQ is leaning heavily on U.S. Big Tech, with Nvidia and Microsoft doing most of the heavy lifting as their AI and cloud stories keep the momentum rising. Amazon and Alphabet are more of a mixed bag, with solid business trends but choppier recent trading that sometimes puts a speed bump in the fund’s path. Apple looks like it’s catching its breath after a strong run, while Meta has been lagging and quietly tugging on returns. Overall, this is a U.S.-centric, tech-driven ETF whose fortunes largely follow the mega-cap growth leaders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia8.46%$12.42M$5.55T32.19%
76
Outperform
Apple7.43%$10.91M$4.67T34.93%
79
Outperform
Microsoft5.92%$8.69M$3.71T-0.89%
79
Outperform
Amazon4.07%$5.97M$2.79T7.86%
71
Outperform
Alphabet Class A3.20%$4.70M$4.12T41.20%
85
Outperform
Broadcom2.71%$3.97M$1.70T6.30%
76
Outperform
Alphabet Class C2.69%$3.95M$4.12T39.75%
82
Outperform
Meta Platforms2.03%$2.97M$1.57T-19.88%
76
Outperform
Tesla1.86%$2.74M$1.40T6.11%
73
Outperform
JPMorgan Chase1.84%$2.70M$953.33B18.69%
72
Outperform

PHEQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
34.82
Positive
100DMA
34.43
Positive
200DMA
33.42
Positive
Market Momentum
MACD
0.14
Positive
RSI
58.18
Neutral
STOCH
70.93
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PHEQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 35.16, equal to the 50-day MA of 34.82, and equal to the 200-day MA of 33.42, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHEQ.

PHEQ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$146.20M0.29%
76
Outperform
$970.28M0.75%
71
Outperform
$889.79M0.35%
74
Outperform
$854.57M0.29%
73
Outperform
$778.80M0.55%
74
Outperform
$756.69M0.50%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHEQ
Parametric Hedged Equity ETF
35.22
3.74
11.88%
FTQI
First Trust Hedged BuyWrite Income ETF
INFO
Harbor PanAgora Dynamic Large Cap Core ETF
NBCR
Neuberger Berman Core Equity ETF
AFLG
First Trust Active Factor Large Cap ETF
GSPY
Gotham Enhanced 500 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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