ETF Evaluator: First Trust Nasdaq Lux Dgtl Hlth SoluETF () Follow This ETF

First Trust Nasdaq Lux Dgtl Hlth SoluETF Overview

First Trust Nasdaq Lux Dgtl Hlth SoluETF (EKG) is a passively managed Sector Equity Health exchange-traded fund (ETF). First Trust launched the ETF in 2022.

The investment seeks results that correspond generally to the price and yield of an equity index called the Nasdaq Lux Health Tech Index TM (the “index”). The fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks and depositary receipts that comprise the index. The index is designed to measure the performance of a selection of companies that are primarily engaged in and involved at the intersection of healthcare and technology, as classified by Lux Capital based on analysis of the products and services offered by those companies. The fund is non-diversified.

About First Trust Nasdaq Lux Dgtl Hlth SoluETF (EKG)

There are 7 members of the management team with an average tenure of 4.36 years: Daniel Lindquist (2022), Jon Erickson (2022), David McGarel (2022), Stan Ueland (2022), Chris Peterson (2022), Erik Russo (2022) and Roger Testin (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and N_Ndaq Lux Health Tech USD_D index with a weighting of 100%. First Trust Nasdaq Lux Dgtl Hlth SoluETF has 39 securities in its portfolio. The top 10 holdings constitute 60.5% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust Nasdaq Lux Dgtl Hlth SoluETF is part of the Equity global asset class and is within the Sector Equity ETF group. First Trust Nasdaq Lux Dgtl Hlth SoluETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 100.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Nasdaq Lux Dgtl Hlth SoluETF has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $3 million in total assets, which is below the $1 billion average for the Health category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

EKG Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Nasdaq Lux Dgtl Hlth SoluETF expense ratio is above average compared to funds in the Health category. First Trust Nasdaq Lux Dgtl Hlth SoluETF has an expense ratio of 0.65%, which is 26% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Nasdaq Lux Dgtl Hlth SoluETF has a portfolio turnover rate of 12%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 45% for the Health category.

Recently, in the month of July 2026, First Trust Nasdaq Lux Dgtl Hlth SoluETF returned 4.5%, which earned it a grade of A, as the Health category had an average return of -0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust Nasdaq Lux Dgtl Hlth SoluETF has a trailing yield of 0.00%, which is below the 1.10% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust Nasdaq Lux Dgtl Hlth SoluETF Grades

Year to date, the ETF has returned 3.3%, 6.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 14.9% over the past year (grade of F) and 2.4% over the past three years (grade of F).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about First Trust Nasdaq Lux Dgtl Hlth SoluETF, including its riskiness, submit your email to unlock the rest of the article.