What Is the FTXN ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An ETF that concentrates on the US oil and gas industry through a smart beta strategy that selects high-quality companies within the energy sector.
SubscribeWhat Is This ETF?
The fund tracks the Nasdaq US Smart Oil & Gas Index and builds its portfolio by evaluating US energy companies on cash flow, return on assets (ROA), price momentum, and other factors. The strategy aims to address the limitations of a simple market-cap-weighted approach.
It suits investors who want to bet on the growth of the US energy industry while preferring a portfolio weighted toward companies with strong financial metrics.
Launched by First Trust in 2016, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Nasdaq US Smart Oil & Gas Index |
| Management Style | Passive (smart beta) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.60% |
The index ranks stocks on a composite of profitability (gross income), efficiency (ROA), cash flow, and price volatility, then selects the top-ranked names. Individual weights are allocated according to the size of each company's cash flow, with caps applied to promote diversification.
- Multi-factor stock selection
- Cash-flow-weighted portfolio construction
Size and Costs
Assets under management (AUM) stand at $1.2B, and the expense ratio is 0.60% per year.
Its fees are somewhat higher than those of comparable sector ETFs such as XLE and VDE, but it offers differentiated, factor-based exposure rather than simple market-cap weighting.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAmid energy price volatility and shifts in the supply chain environment, large refiners that generate strong cash flow have stood out. Because of the nature of factor strategies, the fund's return trajectory can at times diverge from the sector average.
As the energy sector expands dividends and share buybacks, capital seeking both income and asset growth has been flowing in. Oil price volatility driven by geopolitical risk is a key variable behind these inflows.
Strengths and Weaknesses
Its strength is differentiation within the sector through high-quality stock selection, but concentration from a specific strategy and higher costs deserve consideration.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Among the products in the table, XOP is more specialized in exploration and production, while OIH, IEZ, and XES are more specialized in services and equipment. These funds focus on narrower themes than FTXN. In addition, SGDM, which invests in gold mining stocks, has a low correlation, so it should be approached from a portfolio diversification perspective. Direct competitors include the market-cap-based XLE and VDE.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XOP | State Street SPDR S&P Oil & Gas Exploration & Production ETF | $203.76 | +2.1% | $4.6B | 0.35% | 1.53% | +61.9% |
 OIH | VanEck Oil Services ETF | $411.57 | +0.9% | $2.0B | 0.35% | 1.18% | +43.6% |
 IEO | iShares U.S. Oil & Gas Exploration & Production ETF | $151.13 | +2.4% | $914.6M | 0.37% | 1.45% | +70.5% |
 SGDM | Sprott Gold Miners ETF | $64.86 | -5.2% | $598.0M | 0.46% | 1.12% | +9.8% |
 IEZ | iShares U.S. Oil Equipment & Services ETF | $28.33 | +0.8% | $399.1M | 0.37% | 1.16% | +37.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| COP | Conoco Phillips | 0.15% | $154.03 | +2.7% | $185.0B | 20.4 | 2.19% |
| XOM | ExxonMobil Holdings Corp | 0.15% | $187.25 | +2.2% | $770.0B | 24.1 | 2.22% |
| CVX | Chevron Corp | 0.15% | $235.52 | +1.8% | $465.3B | 22.6 | 3.03% |
| OXY | Occidental Petroleum Corp | 0.11% | $64.00 | +1.6% | $64.0B | 19.0 | 1.61% |
| EOG | EOG Resources Inc | 0.11% | $165.54 | +2.0% | $86.8B | 12.9 | 2.48% |
Investor Checkpoints
Investors who want a more refined, factor-based approach rather than the typical market-cap weighting of the energy sector should carefully review the following key points before making an investment decision.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Cost Efficiency | Whether the fee level is appropriate for a factor strategy | Somewhat high |
| 📊 Holdings | Financial soundness of top holdings and whether factors are reflected | Ongoing monitoring |
| 📈 Oil Price Correlation | Sensitivity of fund returns to global oil price swings | Very high |
| 📅 Dividend Status | Trend in quarterly dividends as energy company earnings improve | Stably maintained |
Changes in the regulatory environment for the energy industry and an accelerating shift toward clean energy are long-term risk factors. Performance may also stall during periods when a particular factor loses its effectiveness.
This is a smart beta solution suited to investors who want to concentrate on US energy companies with strong financial metrics. However, if you place a priority on cost competitiveness across the sector, it is advisable to review it alongside other alternative products.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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