(EIPI) First Trust Exchange-Traded - Ratings and Ratios

The First Trust Exchange-Traded Fund VIII (EIPI) is an actively managed exchange-traded fund that focuses on the energy sector, investing at least 80% of its net assets in securities and investments that provide exposure to energy companies. This concentrated investment approach means that the fund will have a significant portion of its assets allocated to a specific industry, making it a non-diversified investment vehicle.

As an ETF in the Derivative Income category, EIPI is designed to generate income through its investments, likely utilizing derivatives to achieve this objective. With a substantial Assets Under Management (AUM) of $912.64 million, the fund has a considerable presence in the market, indicating a reasonable level of liquidity for investors.

Analyzing the funds recent price action, we observe a gradual uptrend, with the short-term Simple Moving Average (SMA20) at $19.51 and the long-term SMA200 at $18.85, suggesting a positive momentum. The Average True Range (ATR) of 0.23, equivalent to 1.14%, indicates moderate volatility. Given the current price of $19.69, we can anticipate a potential continuation of the uptrend, with a possible target near the 52-week high of $20.18, assuming the energy sector continues to perform well.

Based on the available data, a forecast for EIPI could be constructed by considering both technical and fundamental factors. If the energy sector maintains its momentum, and the funds investment strategy continues to yield positive results, we might see EIPIs price appreciate towards $20.50 in the near term, representing a 3.6% increase from the current price. However, a decline in energy prices or a shift in market sentiment could negatively impact the funds performance, potentially leading to a retracement towards the SMA50 at $19.24.