ETF Education Report: FIRST TRUST NASDAQ LUX DIGITAL HEALTH SOLUTIONS ETF (EKG)

What this ETF is trying to do

The FIRST TRUST NASDAQ LUX DIGITAL HEALTH SOLUTIONS ETF (ticker: EKG) is an exchange-traded fund that focuses on the digital health sector. It holds a variety of companies involved in health technology.

What the numbers show

The current price of one share is $24.24. Looking at the past, we can see how the share price has moved:

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 27.64% since the start of the year.

• One-Year Price Return: Over the last 12 months, the share price grew by approximately 36.13%.

• Three-Year Price Return: Over the last three years, the share price grew by approximately 77.81%.

To understand these gains, we can look at an estimated price from roughly one year ago, which was about $17.81. Because the total return data provided matches the price return data, these percentages represent the overall growth of the investment.

Top Holdings

This ETF holds 39 different companies. The list below shows the Top Holdings (the largest companies in the fund):

• VEEVA SYSTEMS INC CLASS A (10.18%)

• IQVIA HOLDINGS INC (9.47%)

• DEXCOM INC (8.05%)

• RESMED INC (6.08%)

• GUARDANT HEALTH INC (5.49%)

• ILLUMINA INC (5.15%)

• NATERA INC (5.02%)

• INTUITIVE SURGICAL INC (4.86%)

• OSCAR HEALTH INC CLASS A (3.67%)

• TEMPUS AI INC CLASS A COMMON STOCK (3.42%)

Please note that holdings can change over time.

Income and distribution explanation

Some investors look for ETFs that pay them cash regularly, which is called a "distribution yield." For this ETF, the distribution yield is 0%. No distributions were detected over the last 12 months. This means the fund has not been paying out cash to shareholders during this time.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. StockValueFinder uses an "erosion-risk score" to measure this risk. For EKG, the erosion score is 100, and the label shows "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has shown positive price returns over the last year and the last three years.

• The erosion-risk measurement is rated as "good."

Cons

• This ETF does not currently provide cash distributions or income.

Beginner takeaway

EKG is an ETF focused on digital health companies. While it has seen significant growth in its share price over the last three years, it does not currently pay out regular cash distributions to investors.