At a glance
FTXO charges 0.6% a year, above the 0.37% average of the 8 funds most like it (the 8th cheapest of 9). It has $301.8M in assets, the 9th largest of that group; it paid 1.94% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +16.8% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds; over three years it returned +30.8% a year. At its worst it fell 50.1% in the 2020 crash (S&P 500: 33.7%) and 30.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 28 months after the lows. Its ten largest positions make up 58.1% of the fund, out of 50 in all.
The short version
First Trust Nasdaq Bank ETF (FTXO) tracks the Nasdaq US Smart Banks Index. The index holds 30 to 50 U.S. banks, picked for profits, return on assets and price momentum and then weighted by book value. As of June 30, 2026, its largest holdings were Citigroup, Bank of America and JPMorgan Chase. At 0.60% a year, it costs more than most bank ETFs, such as Invesco KBW Bank ETF at 0.35%.
Price history
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FTXO +16.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FTXO official prospectus, to Dec 31, 2025 | — | +21.32% | — | +12.55% | — | +9.83% |
| FTXO price data to Oct 27, 2026 | +6.7% | +16.8% | +30.8% | +5.9% | +9.2% | +9.4% |
- Over the year to Oct 27, 2026, FTXO returned +16.8%, 5th of 9 among similar funds.
- Its 5-year annualized return was +5.9% and its 10-year +9.2%.
- In the 2020 COVID crash it fell 50.1% and regained its old high 9.5 months after the low.
- Its worst full calendar year was 2018 (-21.7%); its best was 2021 (+40.4%).
- The deepest fall in its price history was 55.2% (Mar 9, 2018 to Mar 23, 2020), recovered by Feb 19, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +6.7% | — |
| 2025 | +21.3% | +21.32% |
| 2024 | +29.1% | +28.92% |
| 2023 | +0.0% | +0.13% |
| 2022 | -17.9% | -17.95% |
| 2021 | +40.4% | +40.57% |
| 2020 | -12.6% | -12.77% |
| 2019 | +30.1% | +30.11% |
| 2018 | -21.7% | -21.55% |
| 2017 | +14.3% | +13.98% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 49.8% over that stretch · deepest drop along the way 50.1%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.1% over that stretch · deepest drop along the way 30.5%, back to its old high 27.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5400 | |
| 2025 | $0.7300 | +4.3% |
| 2024 | $0.7000 | -13.6% |
| 2023 | $0.8100 | +3.8% |
| 2022 | $0.7800 | +47.2% |
| 2021 | $0.5300 | -19.7% |
| 2020 | $0.6600 | -7.0% |
| 2019 | $0.7100 | -10.1% |
| 2018 | $0.7900 | +146.1% |
| 2017 | $0.3210 |
What's inside
As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 58.14% of assets.
| Holding | Weight | |
|---|---|---|
| CITIGROUP INC | 8.98% | |
| BANK OF AMERICA CORP | 8.08% | |
| JP MORGAN CHASE & COMPANY | 7.71% | |
| WELLS FARGO & COMPANY | 7.17% | |
| TRUIST FINANCIAL CORP | 7.14% | |
| PNC FINANCIAL SERVICES GROUP INC (THE) | 4.10% | |
| CITIZENS FINANCIAL GROUP INC | 3.96% | |
| US BANCORP | 3.91% | |
| M&T BANK CORP | 3.88% | |
| FIRST CITIZENS BANCSHARES INC | 3.21% | |
| HUNTINGTON BANCSHARES INC | 3.20% | |
| FIFTH THIRD BANCORP | 3.19% | |
| KEYCORP | 2.79% | |
| REGIONS FINANCIAL CORP | 2.69% | |
| EAST WEST BANCORP INC | 1.47% |
By country
United States 98.2%Puerto Rico 1.61%By asset type
Stocks 99.81%By sector
Sectors of the companies held, for the 60.6% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $63.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.38%, -2.45%, +8.81%.
How it works
FTXO is an index fund. It puts at least 80% of its net assets into the stocks of the Nasdaq US Smart Banks Index, which Nasdaq, Inc. owns and runs. The starting pool is the stocks in the Nasdaq US Benchmark Index that are classed as banks. These are companies with a banking license that earn most of their revenue from retail banking, loans and money transfers. Investment banks are left out. Each stock must also meet size, float and trading-volume rules.
Nasdaq then ranks the stocks on four factors. They are net income, return on assets (profit compared with everything the bank owns), momentum (recent price trend) and book value. Book value counts for little and can act as a tiebreaker. The top-ranked 30 to 50 banks make the cut. Each one is weighted by book value, an accounting measure of assets minus debts, not by stock market value. No stock can go above 8%, and only five can hold that maximum. All others are capped at 4%, and none can fall below 0.50%.
The index is rebalanced and rebuilt twice a year, and the fund follows shortly after. Its portfolio turnover was 49%. Weights can drift between rebalances. Citigroup was 9.0% of the fund as of June 30, 2026, and the top 10 holdings made up 58.1%. The fund holds plain stocks only, with no leverage, options or derivatives.
What it really costs
- FTXO charges 0.6% a year, versus an average of 0.37% for the similar funds below (8th of 9, cheapest first).
In a retirement portfolio
FTXO holds about 50 stocks from one industry, banks, and has fallen by half in a single market shock, so it fits better as a small add-on than as a foundation.
The fund launched in 2016, so it has no record from the 2008 crisis. Between February 20 and March 23, 2020, it lost 50.1%. It got back to its old peak on January 7, 2021. In 2022 it fell 30.5% between January and July, and it took about 28 months, until November 6, 2024, to recover. Its worst calendar year was 2018, at -21.55%. Someone forced to sell shares or draw income during stretches like these would lock in deep losses.
The income is modest. The trailing yield was 1.94% as of October 27, 2026, paid quarterly. The 0.60% expense ratio is above the 0.37% average of similar funds. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, targeted stake in big U.S. banks like Citigroup, Bank of America and JPMorgan Chase, the top three as of June 30, 2026.
- Those who prefer a rules-based screen that favors profitable banks, using net income, return on assets and momentum, over plain market-value weighting.
- Investors who can hold through steep drops, like the 50.1% fall in early 2020, without needing to sell.
Look elsewhere if
- Cost-focused investors: FTXO charges 0.60% a year, versus 0.35% for Invesco KBW Bank ETF, which shares about 62% of its holdings.
- Those who rely on their portfolio for income; the trailing yield was 1.94% as of October 27, 2026, paid quarterly.
- Anyone wanting broad diversification or quick recoveries; it holds about 50 banks, and its 2022 drop took about 28 months to recover.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FTXO this fund | — | 0.6% | $301.8M | +16.8% | +30.8% |
| KBWB Invesco KBW Bank ETF | 62% | 0.35% | $6.77B | +17.4% | +37.5% |
| IAT iShares U.S. Regional Banks ETF | 57% | 0.4% | $656.0M | +22.9% | +28.5% |
| KBE SPDR S&P Bank ETF | 40% | 0.35% | $1.48B | +17.1% | +27.2% |
| KRE SPDR S&P Regional Banking ETF | 36% | 0.35% | $4.74B | +21.5% | +26.5% |
| IYG iShares U.S. Financial Services ETF | 29% | 0.39% | $2.17B | +6.1% | +26.1% |
| IYF iShares U.S. Financials ETF | 29% | 0.39% | $4.43B | +6.7% | +24.4% |
| DFNL Davis Select Financial ETF | 27% | 0.63% | $479.6M | +12.3% | +27.4% |
Questions investors ask
What does FTXO invest in?
FTXO holds U.S. bank stocks chosen by the Nasdaq US Smart Banks Index. As of June 30, 2026, it owned 50 banks, led by Citigroup (9.0%), Bank of America (8.1%), JPMorgan Chase (7.7%), Wells Fargo (7.2%) and Truist Financial (7.1%). The top 10 made up 58.1% of assets. Investment banks are excluded by the index rules. About 1.6% was in banks based in Puerto Rico, and the rest was in U.S. banks.
FTXO vs KBWB: which bank ETF is cheaper?
Invesco KBW Bank ETF (KBWB) is cheaper, at 0.35% a year versus 0.60% for FTXO. The two funds share about 62% of their holdings. KBWB is also much bigger: it had $5.3 billion in net assets as of May 31, 2026, while FTXO had $301.8 million as of June 30, 2026. KBWB's annualized three-year return was 37.5%, versus 30.8% for FTXO, as of October 27, 2026. What sets FTXO apart is its factor screen and its book-value weighting.
Does FTXO pay monthly dividends?
No. FTXO pays dividends quarterly, not monthly. Over the 12 months to October 27, 2026, it paid about $0.77 per share, a trailing yield of 1.94%. The money comes from the dividends of the banks it owns. That means the payout can rise or fall with bank profits and with the banks' own dividend decisions. Banks often cut dividends during hard times to protect their capital.
How has FTXO performed over 5 years?
As of December 31, 2025, FTXO returned 12.55% a year over five years, according to its prospectus. Since its launch in September 2016, it returned 9.83% a year. Its return for 2025 was 21.32%. Results swung widely from year to year, from a 40.57% gain in 2021 to a 21.55% loss in 2018, and it lost 17.95% in 2022. Based on prices through October 27, 2026, it was up 6.7% year to date.
Is FTXO too risky for retirees?
It carries more concentrated risk than a broad stock fund because it owns only banks. FTXO's deepest drop was 55.2%, from March 2018 to March 2020, and it recovered by February 2021. In 2022 it fell 30.5% and took about 28 months to recover. Its three-year volatility, a measure of how much returns swing, was 24.3% as of October 27, 2026. It may suit a small slice of a diversified portfolio rather than the core.