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RND - ETF AI Analysis

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RND

First Trust Bloomberg R&D Leaders ETF (RND)

Rating:75Outperform
Price Target:
RND, the First Trust Bloomberg R&D Leaders ETF, earns a solid overall rating because it is heavily built around innovative, financially strong tech leaders like Microsoft and Alphabet, whose growth in cloud, AI, and digital services supports long-term potential. Other major positions such as Apple and Nvidia further boost the fund by combining strong profitability with strategic focus on AI and advanced hardware, though their high valuations and some mixed technical signals introduce volatility risk. The main risk factor is the ETF’s concentration in large technology and AI-focused companies, which can make performance more sensitive to shifts in tech markets and investor sentiment toward high-growth stocks.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, showing positive momentum for investors.
Leading Technology and Innovation Holdings
Many of the largest positions are well-known technology and R&D-focused companies with strong recent performance, which can help drive growth.
Broad Sector Diversification Within the U.S.
The fund spreads its investments across several sectors, including technology, consumer, health care, and communication services, which helps reduce reliance on any single industry.
Negative Factors
High Concentration in a Few Mega-Cap Stocks
A small group of large companies makes up a big share of the portfolio, increasing the impact that any one stock’s moves can have on the ETF.
Mixed Performance Among Top Holdings
While some major positions have performed strongly, others have been weak or lagging, which can create uneven results for the fund.
Higher Expense Ratio Than Many Broad Market ETFs
The fund’s fee is relatively high compared with simple index ETFs, meaning more of the return is eaten up by costs over time.

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

RND Summary

The First Trust Bloomberg R&D Leaders ETF (RND) tracks the Bloomberg R&D Leaders Select TR index, focusing on U.S. companies that spend heavily on research and development. It holds many well-known innovators such as Apple and Microsoft, along with other major tech, healthcare, and consumer brands. Someone might invest in this ETF to seek long-term growth by backing companies that are trying to create new products and technologies, while also getting diversification across several sectors. A key risk is that it leans heavily toward technology and innovation-focused stocks, which can be more volatile and can go up and down sharply with market swings.
How much will it cost me?The First Trust Bloomberg R&D Leaders ETF (RND) has an expense ratio of 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on companies with strong research and development initiatives to drive innovation and growth.
What would affect this ETF?The First Trust Bloomberg R&D Leaders ETF (RND) could benefit from continued advancements in technology and healthcare, as these sectors make up a significant portion of its holdings and are often driven by innovation and R&D spending. However, rising interest rates or economic slowdowns could negatively impact growth-focused companies like those in the ETF, particularly in sectors such as consumer cyclical and technology. Regulatory changes in healthcare or technology could also pose risks to some of its top holdings.

RND Top 10 Holdings

RND is powered by a who’s‑who of U.S. innovation, with Big Tech and chip names setting the tone. Microsoft and Nvidia are still rising, helping drive the fund, while Amazon and Alphabet are more mixed, reflecting some recent choppiness in growth and valuation worries. Apple looks steady but is losing a bit of short‑term steam, and Broadcom has been lagging, acting as a mild drag. Overall, the ETF leans heavily into U.S. technology and communication services, with a supporting cast of health care innovators like Amgen and Eli Lilly adding defensive growth.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Microsoft10.36%$1.03M$3.71T-0.89%
79
Outperform
Nvidia8.91%$884.12K$5.55T32.19%
76
Outperform
Apple8.55%$849.20K$4.67T34.93%
79
Outperform
Amazon8.39%$832.92K$2.79T7.86%
71
Outperform
Alphabet Class A7.33%$727.35K$4.12T41.20%
85
Outperform
Meta Platforms4.24%$420.64K$1.57T-19.88%
76
Outperform
Amgen4.14%$411.00K$236.38B56.17%
77
Outperform
Eli Lilly & Co3.70%$367.80K$1.08T49.73%
72
Outperform
Broadcom3.67%$364.34K$1.70T6.30%
76
Outperform
Amphenol3.55%$352.81K$204.13B49.77%
78
Outperform

RND Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
32.38
Positive
100DMA
31.85
Positive
200DMA
30.65
Positive
Market Momentum
MACD
0.15
Positive
RSI
48.60
Neutral
STOCH
51.41
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RND, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 33.01, equal to the 50-day MA of 32.38, and equal to the 200-day MA of 30.65, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 51.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RND.

RND Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$9.99M0.60%
75
Outperform
$99.76M0.89%
71
Outperform
$98.23M0.76%
65
Neutral
$91.78M0.85%
68
Neutral
$91.00M0.75%
70
Neutral
$90.82M0.59%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RND
First Trust Bloomberg R&D Leaders ETF
32.69
3.80
13.15%
BAMD
Brookstone Dividend Stock ETF
BUZZ
VanEck Social Sentiment ETF
STNC
Stance Equity ESG Large Cap Core ETF
SOVF
Sovereign's Capital Flourish Fund
PFOE
Pathfinder Focused Opportunities 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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