FTXN: Solid Long-Term Choice, But Risky To Buy For Now

Konstantinos Kosmidis1.1K FollowersFollow5ShareSavePlay(7min)CommentsSummaryFirst Trust Nasdaq Oil & Gas ETF offers U.S. oil & gas exposure via a factor-weighted, cash flow-focused methodology.FTXN’s top 10 holdings—led by XOM, CVX, and COP—comprise nearly 55% of assets.Due to its methodology and quality bias, the ETF has outperformed XOP over the long run, balancing quality/cash flow leadership with moderate concentration risk.Recent geopolitical tensions and oil price spikes have provided significant tailwinds for FTXN’s upstream-leaning portfolio, but investors are better off viewing the current Iran conflict as a near-term risk. bjdlzx/iStock via Getty Images The First Trust Nasdaq Oil & Gas ETF (FTXN), launched on 09/20/2016 and managed by First Trust Advisors LP, provides exposure to the oil & gas industry within the U.S. equity market. It has $157 million in AUM and chargesThis article was written byKonstantinos Kosmidis1.1K FollowersFollowI began learning about markets and investing when I was 19 years old. My investing is informed by macro insights, fundamentals, and technical indicators. I have mostly written about ETFs, REITs, and Banks on Seeking Alpha. Currently, I am mostly interested in micro/small-cap stock opportunities and I expect to share many related ideas this year.When I'm neither working on my next article nor hunting for opportunities, I either run, swim, or lift weights.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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.