(FTRI) First Trust Indxx Global - Ratings and Ratios

The First Trust Indxx Global Natural Resources Income ETF (NASDAQ:FTRI) is a non-diversified exchange-traded fund designed to provide exposure to the upstream segment of the natural resources sector. The fund typically allocates at least 90% of its net assets to common stocks and depositary receipts that are part of its underlying index. The index is a free float-adjusted, market capitalization-weighted benchmark that tracks the performance of the 50 highest dividend-paying companies in the upstream natural resources sector, which includes industries such as energy exploration, oil and gas production, and mining.

The funds investment strategy focuses on dividend yield, targeting companies that generate significant income for investors. Its upstream focus means it emphasizes companies involved in the extraction and production of natural resources rather than downstream activities like refining or distribution. The funds market capitalization-weighted approach ensures that larger companies in the index have a greater influence on its performance. As a non-diversified fund, it can invest a significant portion of its assets in a limited number of securities, which may increase its risk profile compared to diversified funds.

Based on the provided data, the funds technical indicators suggest a bearish trend in the near term. The 20-day SMA ($12.63) and 50-day SMA ($12.46) are both above the current price ($12.22), indicating recent downward momentum. The 200-day SMA ($12.87) is also above the current price, reinforcing the bearish outlook. The average true range (ATR) of 0.16 indicates low volatility, suggesting that price movements are relatively stable. Over the next three months, the fund is likely to face headwinds from broader market conditions impacting the natural resources sector, particularly in the upstream segment. However, its focus on high-dividend-paying companies may provide some stability, as income-focused investors may seek refuge in such assets during uncertain times.

From a fundamental perspective, the funds assets under management (AUM) of $96.87 million reflect a moderate size, which allows for efficient trading without significant market impact. The funds average daily volume of 35,955 shares suggests decent liquidity, though it may not be as high as larger ETFs in the natural resources category. The combination of its dividend-focused strategy and exposure to the upstream natural resources sector positions it as a niche product for investors seeking income and exposure to companies involved in the extraction of natural resources.