FTXO: An Underperforming Banking ETF With Attractive Yields

Hansen Song
83 Followers

Summary

  • First Trust Nasdaq Bank ETF is a US large-cap banking ETF with a steady dividend yield of 3.75% and a high dividend growth rate of 30%.
  • The fund experienced a significant downturn in February 2023 due to the failure of several US banks, including Silicon Valley Bank.
  • The fund grapples with high-concentration risk and volatility, and it also contends with declining consumer sentiment toward large-cap banks.

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Strategy

Launched and managed by First Trust Advisors L.P. in 2016, the First Trust Nasdaq Bank ETF (NASDAQ:FTXO) invests in stocks of companies operating across the United States banking industry. FTXO invests in growth, value, and volatility stocks

This article was written by

83 Followers
Student at Columbia University with interests in finance, healthcare, and tech.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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