FCA - ETF AI Analysis

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First Trust China AlphaDEX Fund (FCA)

Rating:66Neutral

Price Target:―

The ETF FCA, focused on Chinese equities, has a solid overall rating, reflecting a mix of strong performers and some weaker holdings. Notable contributors include New China Life Insurance Co., Ltd., which benefits from robust financial health and attractive valuation metrics, and People's Insurance Co (Group) of China, which adds strength with its solid financial performance and bullish technical indicators. However, RemeGen Co. Ltd. is a weaker holding, facing significant financial challenges and bearish momentum, which may slightly weigh on the fund's rating. Investors should also be mindful of the ETF's concentration in a single region, which could pose risks during periods of economic or geopolitical instability in China.

Positive Factors

Strong Top Holdings

Several of the largest positions, such as RemeGen Co. Ltd. and Shandong Gold Mining Co., have delivered strong year-to-date performance, supporting the fund’s overall returns.

Sector Diversification

The ETF invests across a variety of sectors, including Materials, Industrials, and Health Care, reducing reliance on any single industry.

Focused Geographic Exposure

The fund’s heavy allocation to Hong Kong-based companies provides targeted exposure to a specific market with growth potential.

Negative Factors

High Geographic Concentration

With over 95% of assets in Hong Kong, the ETF is highly exposed to risks specific to this region.

Relatively High Expense Ratio

The fund charges a higher expense ratio compared to many ETFs, which could eat into long-term returns.

Mixed Performance

While some holdings have performed well, others, like PetroChina and China Coal Energy Co., have shown weaker year-to-date growth, potentially limiting overall gains.

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

AUM59.10M

RegionAsia-Pacific

Expense Ratio0.80%

Beta0.50

IssuerFirst Trust

Inception DateApr 18, 2011

Dividend Yield2.25%

Asset ClassEquity

Index TrackedNASDAQ AlphaDEX China Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume10,229

30 Day Avg. Volume15,665

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

34.12

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering51

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FCA Summary

The First Trust China AlphaDEX Fund (FCA) is an ETF that lets investors access a wide range of companies in China, from large to small businesses, across industries like materials, energy, and healthcare. It follows the NASDAQ AlphaDEX China Index, using a strategy to pick stocks based on growth and value factors. Some well-known companies in the fund include Baidu and PetroChina. Investors might consider FCA for diversification and exposure to China's growing economy. However, it’s important to know that the fund is heavily tied to the Chinese market, which can be volatile and influenced by local economic and political changes.

How much will it cost me?The First Trust China AlphaDEX Fund (FCA) has an expense ratio of 0.8%, which means you’ll pay $8 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using a proprietary strategy to select stocks based on growth and value factors. Active management typically involves more research and trading, which increases costs.

What would affect this ETF?The FCA ETF could benefit from China's ongoing economic growth and industrial expansion, particularly in sectors like materials, energy, and healthcare, which are heavily represented in its holdings. However, potential risks include regulatory changes in China, geopolitical tensions, and global economic slowdowns, which could negatively impact the ETF's performance given its concentrated exposure to the Chinese market.

FCA Top 10 Holdings

The First Trust China AlphaDEX Fund (FCA) leans heavily into China's industrial and materials sectors, with names like China Hongqiao Group and Shandong Gold Mining driving steady gains thanks to robust financial performance and upward momentum. However, the fund faces headwinds from lagging stocks like RemeGen Co., which struggles with profitability and bearish sentiment. Energy giant PetroChina adds stability, though caution is warranted due to mixed technical signals. Overall, FCA’s sector concentration in materials and energy highlights its focus on China’s economic backbone, offering a mix of promise and challenges for investors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
1378	China Hongqiao Group Ltd.	4.75%	$2.85M	HK$302.89B	159.08%	78 Outperform
1508	China Reinsurance (Group) Corp. Class H	3.68%	$2.21M	HK$68.39B	83.33%	71 Outperform
2208	Xinjiang Goldwind Science & Technology Co	3.59%	$2.15M	HK$65.55B	93.28%	74 Outperform
0857	PetroChina Company	3.58%	$2.15M	HK$1.92T	55.40%	73 Outperform
1787	Shandong Gold Mining Co., Ltd. Class H	3.50%	$2.10M	HK$174.98B	149.56%	76 Outperform
9995	RemeGen Co. Ltd. Class H	3.33%	$2.00M	HK$50.59B	377.08%	40 Underperform
1339	People's Insurance Co (Group) of China	3.33%	$2.00M	HK$398.46B	89.87%	78 Outperform
1898	China Coal Energy Co	3.29%	$1.97M	HK$182.23B	17.39%	64 Neutral
9888	Baidu, Inc. Class A	3.09%	$1.86M	HK$321.49B	44.14%	67 Neutral
1336	New China Life Insurance Co., Ltd. Class H	3.07%	$1.84M	HK$199.37B	109.05%	83 Outperform

FCA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

28.82

Negative

100DMA

27.63

Positive

200DMA

24.41

Positive

Market Momentum

MACD

-0.01

Positive

RSI

48.91

Neutral

STOCH

28.15

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FCA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 29.01, equal to the 50-day MA of 28.82, and equal to the 200-day MA of 24.41, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 28.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCA.

FCA Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FCA	―	―	$59.10M	0.80%	―
MCHI	―	―	$7.82B	0.59%	―
FXI	―	―	$6.44B	0.74%	―
FLCH	―	―	$229.10M	0.19%	―
PGJ	―	―	$134.96M	0.70%	―
CGRO	―	―	$5.37M	0.75%	―

Performance Comparison

FCA

First Trust China AlphaDEX Fund

28.80

9.66

50.47%

MCHI

iShares MSCI China ETF

―

FXI

iShares China Large-Cap ETF

―

FLCH

Franklin FTSE China ETF

―

PGJ

Invesco Golden Dragon China Etf

―

CGRO

CoreValues Alpha Greater China Growth ETF

―

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.

Disclaimer

This 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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