What Is the FTXO ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The First Trust Nasdaq Bank ETF (FTXO) is a passive sector product that selects US bank stocks using a smart beta approach. Its key selection criteria are the quarterly dividend, the concentration in the banking sector, and differences in selection and construction versus related funds such as KBWB, KRE, and KBE.
SubscribeWhat Is the First Trust Nasdaq Bank ETF?
It is a passive sector ETF that tracks an index composed of companies in the US banking industry. It gains exposure to the banking sector by selecting bank stocks and assigning weights using a smart beta approach that reflects growth, value, and volatility metrics.
It suits investors who want to concentrate on the banking sector and are willing to tolerate volatility driven by interest rate and credit cycles.
It is an ETF managed by First Trust using a passive (index-tracking) approach.
How Do You Invest in the First Trust Nasdaq Bank ETF?
| Item | Details |
|---|---|
| Investment Target | US bank stocks |
| Management Style | Passive (smart beta) |
| Selection Criteria | Growth, value, volatility |
| Dividend Frequency | Quarterly dividend |
| Total Expense Ratio | 0.60% |
Using the Nasdaq US smart beta methodology, the fund selects US bank stocks and assigns weights based on growth, value, and low-volatility metrics. Unlike simple market-cap weighting, it reflects factors while providing exposure to the banking sector, but because it is concentrated in a single industry, its performance depends on interest rate and credit cycles.
- Bank stocks selected through smart beta
- Concentrated in the banking sector
First Trust Nasdaq Bank ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $244.0M, and the total expense ratio is 0.60% per year.
The main point of comparison versus market-cap-weighted bank ETFs is the smart beta factor-based selection.
First Trust Nasdaq Bank ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBank stocks are driven by interest rate and credit cycles and the broader economy. They tend to be strong when net interest margins improve or the economy recovers, and weak when credit deteriorates or rates fall sharply. They react sensitively to changes in the interest rate environment.
Fund flows into bank stocks diverge depending on the rate environment, credit outlook, and economic cycle, and money sometimes moves into related products when rate hikes or expectations of deregulation come to the fore. It is also worth noting that performance can vary widely depending on the rate and credit environment.
First Trust Nasdaq Bank ETF Pros and Cons
Exposure to the bank factor is its strength, while sector concentration, sensitivity to rates and credit, and volatility are considerations.
💪 Key Strengths
⚠️ Points to Watch
First Trust Nasdaq Bank ETF Alternative ETFs and Related Products
For market-cap-weighted exposure to bank stocks, direct substitutes include KBWB, and for a focus on regional banks, products such as KRE are also worth comparing. For another take on banking sector exposure, products such as KBE can also be considered. The three products shown in the table, KBWB, KRE, and KBE, differ in composition and weighting method, covering large banks, regional banks, and a broad bank index respectively, while this ETF is differentiated by its smart beta selection of bank stocks.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLF | State Street Financial Select Sector SPDR ETF | $56.51 | -0.8% | $53.1B | 0.08% | 1.46% | +8.2% |
 KBWB | Invesco KBW Bank ETF | $88.42 | -1.9% | $6.8B | 0.35% | 2.11% | +15.3% |
 KRE | State Street SPDR S&P Regional Banking ETF | $72.01 | -1.2% | $4.0B | 0.35% | 2.24% | +20.3% |
 IYG | iShares U.S. Financial Services ETF | $94.26 | -1.0% | $2.3B | 0.37% | 1.09% | +7.3% |
 KBE | State Street SPDR S&P Bank ETF | $65.70 | -1.1% | $1.5B | 0.35% | 2.24% | +16.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| C | Citigroup Inc | 0.17% | $122.64 | -2.5% | $205.7B | 12.0 | 2.09% |
| BAC | Bank Of America Corp | 0.16% | $50.01 | -2.2% | $346.2B | 11.9 | 2.4% |
| JPM | JPMorgan Chase & Co | 0.16% | $337.04 | -1.9% | $895.9B | 14.1 | 1.9% |
| WFC | Wells Fargo & Co | 0.15% | $83.40 | -1.7% | $250.4B | 11.8 | 2.28% |
| TFC | Truist Financial Corp | 0.15% | $48.79 | -1.1% | $59.6B | 12.6 | 4.27% |
First Trust Nasdaq Bank ETF Investor Checkpoints
These are the points to review before investing in FTXO. Exposure to the bank factor is attractive, but sector concentration, sensitivity to rates and credit, and volatility should be checked in advance. It is also a good idea to compare it with market-cap-weighted and regional bank products.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🏦 Bank Exposure | Review banking sector composition | Bank-concentrated |
| 📊 Smart Beta | Review factor selection method | Factors applied |
| 📉 Rates and Credit | Review rate and credit cycles | Fairly sensitive |
| ⚡ Volatility | Review bank stock volatility | High |
The main variables for performance are the impact of sharp rate declines, a worsening credit environment, and an economic slowdown on bank earnings. Because the fund is concentrated in a single banking sector, it is more volatile than diversified products. It can fall sharply during a financial crisis.
It is a suitable candidate for investors who want to concentrate on the banking sector. If you want market-cap-weighted banks or regional banks, consider products such as KBWB or KRE, and if you want smart beta bank exposure, it is advisable to compare this product alongside them before choosing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 10, 2026.
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