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Is First Trust NASDAQ Transportation ETF (FTXR) a Strong ETF Right Now?

5 33 13
24.09.2021

The First Trust NASDAQ Transportation ETF (FTXR) made its debut on 09/20/2016, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

FTXR is managed by First Trust Advisors, and this fund has amassed over $1.11 billion, which makes it one of the average sized ETFs........

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