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

The First Trust Exchange-Traded Fund IV - FT Energy Income Partners Strategy ETF (NYSE ARCA:EIPX) is designed to provide exposure to the energy sector by primarily investing in equity securities of energy companies. Under normal market conditions, the fund allocates at least 80% of its net assets (plus any borrowing for investment purposes) to a portfolio of energy-related equities. This includes U.S. and non-U.S. companies across various market capitalizations, offering a diversified approach to capturing opportunities in the energy market. While the fund may hold equity securities of MLPs (Master Limited Partnerships), its exposure to these entities is limited to ensure compliance with tax diversification rules, mitigating potential regulatory and tax complexities associated with partnership structures. As a non-diversified fund, it may concentrate investments in a smaller number of issuers, which can increase volatility compared to diversified funds.

From a technical standpoint, EIPX is currently trading at $25.30, slightly below its 20-day simple moving average (SMA) of $25.83 but above its 200-day SMA of $24.26. The 50-day SMA of $25.40 suggests a relatively flat trend over the medium term. The average true range (ATR) of 0.31 indicates moderate price volatility. Over the next three months, if the energy sector maintains its current momentum, driven by rising commodity prices and increased demand for energy stocks, EIPX could experience upward pressure, potentially testing resistance levels near its 20-day SMA. However, any broader market downturn or weakening energy prices could lead to a retest of the 200-day SMA. The funds assets under management (AUM) of $381.95M reflect moderate investor interest, and its average daily trading volume of 28,429 shares suggests liquidity sufficient for most retail investors.