(QCLN) First Trust NASDAQ Clean - Ratings and Ratios

The First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) is an ETF that focuses on clean energy companies across various market capitalizations in the US. It tracks the performance of the underlying index, which comprises publicly traded companies in the clean energy sector.

To evaluate the funds performance, we can look at key metrics such as tracking error, expense ratio, and trading volume. A low tracking error indicates that the fund closely follows the underlying index. The expense ratio, typically around 0.6% for QCLN, affects the funds net returns. High trading volume is essential for liquidity, and QCLNs average daily trading volume is substantial, making it a relatively liquid ETF.

From a portfolio perspective, QCLNs holdings are concentrated in the clean energy sector, which includes companies involved in renewable energy, biofuels, and energy efficiency. The funds top holdings and sector allocation can provide insights into its risk profile and potential areas of growth. Investors should consider the funds concentration risk, as it is non-diversified and heavily focused on a specific sector.

To assess the funds potential for returns, we can examine its historical performance, dividend yield, and correlation with other assets. QCLNs dividend yield is relatively modest, and its correlation with broader equity markets can be significant, given its focus on US-listed companies. However, its correlation with the clean energy sector is likely to be high, making it a targeted play on this specific industry.

In terms of risk management, investors should be aware of the funds sensitivity to regulatory changes, commodity prices, and technological advancements in the clean energy sector. The funds beta and standard deviation can provide insights into its volatility relative to broader markets. By understanding these factors, investors can make more informed decisions about incorporating QCLN into their portfolios.