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FAB - ETF AI Analysis

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FAB

First Trust Multi Cap Value AlphaDEX Fund (FAB)

Rating:70Outperform
Price Target:
FAB (First Trust Multi Cap Value AlphaDEX Fund) has an overall rating that suggests it holds generally solid, but not flawless, value-oriented positions, with much of its strength coming from energy names like Devon Energy, ConocoPhillips, EOG Resources, and Exxon Mobil, which benefit from strong financial performance, attractive valuations, and supportive earnings calls. These are partly offset by weaker holdings such as Dow Inc., where declining revenue, high leverage, and bearish technical trends weigh on the fund. A key risk factor is the fund’s heavy exposure to energy and related cyclicals, which can make performance more sensitive to commodity prices and broader economic conditions.
Positive Factors
Solid Recent Performance
The fund has delivered strong gains so far this year and in recent months, showing positive momentum.
Broad Sector Diversification
Holdings are spread across many sectors, including financials, consumer cyclical, industrials, energy, real estate, and technology, which helps reduce reliance on any single industry.
Limited Single-Stock Concentration
Each of the top holdings makes up only a small slice of the portfolio, which helps lower the risk from any one company performing poorly.
Negative Factors
High Expense Ratio
The fund’s fees are relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Heavy U.S. Exposure
With almost all assets invested in U.S. companies, the fund offers little geographic diversification and is highly tied to the U.S. market.
Mixed Performance Among Top Holdings
Several of the largest positions have shown weak or negative performance this year, which could weigh on future returns if the trend continues.

FAB vs. SPDR S&P 500 ETF (SPY)

FAB Summary

FAB (First Trust Multi Cap Value AlphaDEX Fund) is an ETF that follows the Nasdaq AlphaDEX Multi Cap Value index, focusing on U.S. companies that appear undervalued. It owns a mix of large, mid, and small firms across many sectors, with a tilt toward financials and consumer-related businesses. Well-known holdings include PayPal and Charter Communications. Someone might invest in FAB to get broad, diversified stock exposure while targeting value stocks that could have room to grow over time. A key risk is that value stocks can stay out of favor for long periods, so the price can go up and down with market swings.
How much will it cost me?The expense ratio for the First Trust Multi Cap Value AlphaDEX Fund (FAB) is 0.64%, which means you’ll pay $6.40 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using a proprietary methodology to select and weight stocks for potential growth within the value investing niche.
What would affect this ETF?The ETF's focus on value investing and exposure to sectors like Financials and Energy could benefit from rising interest rates or increased demand for energy, while its U.S. geographic focus might provide stability in a strong domestic economy. However, economic slowdowns, regulatory changes in key sectors like Health Care or Financials, or declining consumer spending could negatively impact its performance. Additionally, the fund's reliance on undervalued stocks means it may face challenges if growth stocks outperform in the broader market.

FAB Top 10 Holdings

FAB is leaning hard into U.S. energy names, with ConocoPhillips, Exxon Mobil, Chevron, and Devon Energy all rising and effectively powering the fund’s recent results. CF Industries and Dow are also perking up, adding an industrial and materials twist to what is otherwise an energy-heavy story. That sector tilt means the ETF’s fortunes are closely tied to commodity trends rather than Big Tech momentum. Dow is more of a mixed bag, still wrestling with fundamental headwinds, which keeps it from fully joining the leaders’ circle.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Super Micro Computer0.54%$745.41K$17.26B-7.03%
58
Neutral
DR Horton0.51%$705.73K$44.42B29.80%
66
Neutral
Synchrony Financial0.49%$681.36K$27.31B59.86%
72
Outperform
Fiserv0.49%$676.82K$34.30B-70.48%
68
Neutral
PayPal Holdings0.48%$671.62K$47.38B-17.16%
76
Outperform
Charter Communications0.48%$669.23K$34.54B-26.98%
69
Neutral
Elevance Health0.48%$669.02K$70.15B-21.11%
76
Outperform
T Rowe Price0.47%$656.60K$21.35B15.04%
75
Outperform
PulteGroup0.47%$652.98K$24.41B27.50%
70
Outperform
Lennar0.47%$651.82K$23.11B-12.15%
59
Neutral

FAB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
95.86
Positive
100DMA
93.43
Positive
200DMA
89.05
Positive
Market Momentum
MACD
1.10
Negative
RSI
69.12
Neutral
STOCH
90.06
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FAB, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 96.02, equal to the 50-day MA of 95.86, and equal to the 200-day MA of 89.05, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 69.12 is Neutral, neither overbought nor oversold. The STOCH value of 90.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAB.

FAB Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$139.08M0.66%
70
Outperform
$809.08M0.13%
69
Neutral
$767.98M0.12%
72
Outperform
$595.27M0.40%
75
Outperform
$510.40M0.28%
73
Outperform
$397.14M0.38%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FAB
First Trust Multi Cap Value AlphaDEX Fund
98.71
25.69
35.18%
VFVA
Vanguard U.S. Value Factor ETF
VLU
SPDR S&P 1500 Value Tilt ETF
LSVD
LSV Disciplined Value ETF
QVAL
Alpha Architect U.S. Quantitative Value ETF
AIVL
WisdomTree U.S. AI Enhanced Value Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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