FGM - ETF AI Analysis

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First Trust Germany AlphaDEX Fund (FGM)

Rating:68Neutral

Price Target:―

FGM, the First Trust Germany AlphaDEX Fund, has a solid overall rating driven mainly by strong contributors like Deutsche Lufthansa, Aurubis, Bilfinger, LEG Immobilien, and BMW, which combine improving or strong financial performance with bullish technical trends and generally attractive valuations. However, weaker holdings such as Schaeffler and Bayer, which face high leverage, negative or declining profitability, and valuation concerns, weigh on the fund’s score. A key risk factor is the fund’s focus on German companies, which concentrates exposure to Germany’s economy and sector-specific challenges there.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past three months and year-to-date, indicating positive recent momentum.

Leading Holdings Performing Well

Several of the largest positions, such as Schaeffler, Aurubis, Bayer, and thyssenkrupp, have delivered strong year-to-date returns that support the fund’s overall performance.

Diversified Sector Exposure Within Germany

Holdings spread across industrials, consumer cyclical, materials, real estate, financials, health care, and other sectors help reduce the impact of weakness in any single industry.

Negative Factors

High Country Concentration in Germany

With the vast majority of assets invested in German companies, the fund is heavily exposed to economic and market conditions in Germany.

Relatively High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

Notable Weakness in Some Top Holdings

A few major positions, including Aroundtown, BMW, and LEG Immobilien, have shown weak or negative year-to-date performance, which can drag on the fund if the trend continues.

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

AUM113.16M

RegionEurope

Expense Ratio0.80%

Beta0.73

IssuerFirst Trust

Inception DateFeb 14, 2012

Dividend Yield0.6%

Asset ClassEquity

Index TrackedNASDAQ AlphaDEX Germany Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume44,986

30 Day Avg. Volume14,776

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

72.33

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering40

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FGM Summary

FGM is an exchange-traded fund that follows the NASDAQ AlphaDEX Germany Index, focusing mainly on German stocks. It uses a rules-based strategy to pick companies it believes have strong growth or good value, rather than just buying the biggest firms. The fund holds well-known German names like Bayer and BMW, along with many industrial and consumer-focused companies. An investor might consider FGM to diversify into Germany, one of Europe’s largest economies, and to seek long-term growth outside the U.S. A key risk is that it is heavily tied to the German stock market, so its value can rise and fall sharply with that market.

How much will it cost me?The First Trust Germany AlphaDEX Fund (FGM) has an expense ratio of 0.8%, meaning you’ll pay $8 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using a specialized stock selection strategy to try to outperform traditional indices.

What would affect this ETF?The First Trust Germany AlphaDEX Fund (FGM) could benefit from Germany's strong industrial sector and innovation-driven economy, especially if global demand for industrial and consumer goods remains high. However, challenges like rising interest rates in Europe, economic slowdowns, or regulatory changes affecting key sectors such as financials and utilities could negatively impact the ETF's performance. Investors should also consider how geopolitical tensions or shifts in trade policies might influence Germany's export-driven economy.

FGM Top 10 Holdings

FGM is leaning heavily into Germany’s industrial engine, with names like Schaeffler, Aurubis, Bilfinger, and Hochtief doing much of the heavy lifting. Schaeffler and Aurubis are rising standouts, helping power the fund’s recent momentum, while Bilfinger adds steady support from the engineering side. On the flip side, real estate plays such as Aroundtown and LEG Immobilien have been lagging, acting as a bit of a brake. With all holdings tied to Germany, investors are getting a focused bet on Europe’s manufacturing and construction heartbeat.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NDA	Aurubis	5.35%	$6.06M	€7.52B	95.75%	74 Outperform
SHA0	Schaeffler	5.01%	$5.68M	€10.27B	136.16%	52 Neutral
GBF	Bilfinger	4.30%	$4.88M	€4.47B	117.40%	74 Outperform
HOT	Hochtief	4.24%	$4.80M	€27.88B	145.81%	69 Neutral
LHA	Deutsche Lufthansa	4.17%	$4.73M	€10.92B	34.43%	76 Outperform
LEG	LEG Immobilien	4.10%	$4.65M	€5.01B	-14.00%	70 Outperform
AT1	Aroundtown SA	4.06%	$4.60M	€3.05B	7.14%	59 Neutral
BAYN	Bayer	3.83%	$4.34M	€45.18B	113.35%	54 Neutral
BAMXF	Bayerische Motoren Werke Aktiengesellschaft	3.68%	$4.17M	$62.47B	19.25%	71 Outperform
TKA	thyssenkrupp	3.51%	$3.98M	€6.57B	93.60%	59 Neutral

FGM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

64.56

Positive

100DMA

61.45

Positive

200DMA

58.46

Positive

Market Momentum

MACD

1.37

Positive

RSI

59.43

Neutral

STOCH

50.27

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FGM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 67.73, equal to the 50-day MA of 64.56, and equal to the 200-day MA of 58.46, indicating a bullish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FGM.

FGM Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FGM	―	―	$113.16M	0.80%	―
EWG	―	―	$1.79B	0.49%	―
FLGB	―	―	$977.19M	0.09%	―
SPEU	―	―	$795.02M	0.07%	―
DAX	―	―	$290.32M	0.20%	―
FLGR	―	―	$45.07M	0.09%	―

Performance Comparison

FGM

First Trust Germany AlphaDEX Fund

68.62

24.25

54.65%

EWG

iShares MSCI Germany ETF

―

FLGB

Franklin FTSE United Kingdom ETF

―

SPEU

SPDR Portfolio Europe ETF

―

DAX

Global X DAX Germany ETF

―

FLGR

Franklin FTSE Germany 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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