The First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) is an exchange-traded fund (ETF) that primarily invests in the U.S. transportation sector. To achieve its investment objective, the fund allocates at least 90% of its net assets, including any investment borrowings, to the securities that make up the underlying index.
The index itself is specifically designed to track the performance of U.S. companies operating in the transportation sector. These companies are carefully selected based on their liquidity and ranking, which helps to ensure that the fund invests in the most liquid and prominent players in the industry. As a result, the fund provides investors with exposure to a diversified portfolio of transportation companies.
It's worth noting that the First Trust Nasdaq Transportation ETF is classified as a non-diversified fund. This means that the fund can invest a larger portion of its assets in a smaller number of securities, which may increase its potential for volatility and risk. However, this also allows the fund to take a more focused approach to investing in the transportation sector.
For investors looking for more information about the fund, they can visit the website of the fund's sponsor, First Trust Portfolios L.P., at http://www.ftportfolios.com/. The fund is domiciled in the United States and has the ISIN code US33738R7952. It is classified as an ETF and falls under the Industrials category.