Pharma ETF (FTXH) Hits New 52-Week High
For investors seeking momentum, First Trust NASDAQ Pharmaceuticals ETF FTXH is probably on the radar. The fund just hit a 52-week high and rose 37.2% from its 52-week low price of $23.29/share.
But, are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:
FTXH in Focus
The Nasdaq US Smart Pharmaceuticals Index is a modified factor weighted index, designed to provide exposure to US companies within the pharmaceuticals industry. The product charges 60 bps in annual fees (See: all healthcare ETFs here).
Why the Move?
The pharma market has regained momentum lately, driven by favorable regulatory developments and cheaper valuations. The Fed’s rate cuts have also improved funding conditions, and the increasing adoption of AI in U.S. healthcare continues to provide a meaningful tailwind for the sector.
More Gains Ahead?
Currently, FTXH has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 21.53 (as per Barchart.com), which gives cues of a further rally.
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First Trust NASDAQ Pharmaceuticals ETF (FTXH): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com