(FTRI) First Trust Indxx Global - Ratings and Ratios

The First Trust Indxx Global Natural Resources Income ETF (FTRI) is an investment vehicle that tracks the performance of the 50 highest dividend-yielding companies in the upstream segment of the natural resources sector, with a focus on providing income-generating opportunities. By investing at least 90% of its net assets in the constituent stocks and depositary receipts, FTRI offers a diversified exposure to the natural resources industry, albeit with a non-diversified fund structure.

The underlying index is a free-float adjusted market capitalization-weighted index, meaning that the constituent companies are weighted according to their market capitalization, with adjustments made for the proportion of shares available for trading. This methodology allows the fund to capture the performance of the largest and most liquid companies in the sector, while also providing a tilt towards income generation through the selection of high dividend-yielding stocks.

From a technical analysis perspective, FTRIs recent price action has been positive, with the ETF trading above its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, and SMA200, respectively). The Average True Range (ATR) indicates a moderate level of volatility, with a recent ATR of 0.32, representing 2.39% of the current price. Given the current technical setup, it is likely that FTRI will continue to consolidate around its current levels, potentially breaking out to new 52-week highs if the natural resources sector continues to attract investor attention.

Fundamentally, FTRIs Assets Under Management (AUM) stand at $90.51 million, indicating a relatively modest size compared to other ETFs in the natural resources category. However, this size can also indicate a more focused investment strategy. Considering the current dividend yield tilt and the overall market environment, it is likely that FTRI will continue to attract investors seeking income-generating opportunities in the natural resources sector.

Forecasting FTRIs future performance involves analyzing both the technical and fundamental data. Given the current technical setup, with the ETF trading above its key moving averages, and the fundamental appeal of the underlying indexs dividend yield tilt, it is likely that FTRI will continue to perform well in the short to medium term. If the natural resources sector continues to attract investor attention, driven by factors such as commodity price movements and global economic trends, FTRI may break out to new 52-week highs, potentially reaching $14.00 or higher. Conversely, if the sector experiences a downturn, FTRI may retreat to its 50-day SMA or lower. As such, investors should closely monitor the ETFs price action and adjust their investment decisions accordingly.