NXTG: FIRST TRUST INDXX NEXTG ETF
Understanding the FIRST TRUST INDXX NEXTG ETF (NXTG)
The FIRST TRUST INDXX NEXTG ETF (ticker: NXTG) is an exchange-traded fund designed to provide exposure to the next-generation technology sector. Based on its top holdings, the fund invests in companies involved in areas like semiconductors and networking hardware.
What this ETF is trying to do
NXTG focuses on technology companies that support advanced communication and computing. While the full list of holdings is not shown here, the fund holds 107 different companies. Some of its top holdings include Skyworks Solutions Inc (2.56%), Hewlett Packard Enterprise Co (2.00%), and Super Micro Computer Inc (1.93%). Because these holdings can change over time, it is important to check the most recent data regularly.
What the numbers show
The fund has shown significant growth in its share price over various timeframes. Here is a breakdown of the performance:
• Year-to-Date (YTD) Price Return: 44.07%
• One-Year Price Return: 44.90%
• Three-Year Price Return: 128.79%
It is important to distinguish between price return and total return. Price return only measures how much the share price moved. Total return includes both the price change and any cash distributions paid out to investors.
• YTD Total Return: 45.50%
• One-Year Total Return: 47.07%
• Three-Year Total Return: 140.86%
An estimated price from roughly one year ago was $107.15, compared to the current price of $155.26.
Income and distribution explanation
NXTG provides cash distributions to investors. The distribution yield is 1.27%. This number describes the cash paid out relative to the current ETF price. The fund usually pays these distributions on a quarterly basis, with 4 payments made over the last 12 months.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, regarding price movement, the fund has an erosion-risk score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• Strong Price Growth: The fund has seen high price returns over the last year and three years.
• Positive Total Returns: The total return figures are higher than the price return figures, meaning distributions have added to the overall value.
• High Income Rating: The fund has an income rating grade of A+.
Cons
• Lower Yield: While the fund provides income, a 1.27% yield may be considered low for investors looking specifically for high cash flow.
Beginner takeaway
NXTG is a technology-focused ETF that has experienced significant price increases recently. When looking at this fund, remember that the total return is a more complete picture of performance than the price return alone because it includes the distributions paid to you.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SKYWORKS SOLUTIONS INC | SWKS | 2.56% |
| 2 | HEWLETT PACKARD ENTERPRISE CO | HPE | 2.00% |
| 3 | ADVANTECH CO LTD | n/a | 1.97% |
| 4 | SUPER MICRO COMPUTER INC | SMCI | 1.93% |
| 5 | LENOVO GROUP LTD | n/a | 1.92% |
| 6 | ADVANCED MICRO DEVICES INC | AMD | 1.80% |
| 7 | ARISTA NETWORKS INC | ANET | 1.79% |
| 8 | FUJIKURA LTD | n/a | 1.74% |
| 9 | ASE TECHNOLOGY HOLDING CO LTD | n/a | 1.70% |
| 10 | WIWYNN CORP ORDINARY SHARES | n/a | 1.66% |