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FXD - ETF AI Analysis

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FXD

First Trust Consumer Discretionary AlphaDEX Fund (FXD)

Rating:67Neutral
Price Target:
FXD’s rating suggests it is a solid but not top-tier consumer discretionary ETF, supported by strong holdings like Delta Air Lines, Lithia Motors, Disney, and Lear, which benefit from robust revenue growth, solid profitability, and generally attractive valuations. These leaders help lift the fund’s quality, while more mixed names such as Harley-Davidson, Sirius XM, and Gentex, which face challenges in revenue growth, technical trends, or international markets, likely hold the rating back somewhat. The main risk is the fund’s focus on the consumer discretionary sector, which can be sensitive to economic slowdowns and shifts in consumer spending.
Positive Factors
Strong Recent Short-Term Performance
The ETF has shown strong gains over the past month, indicating positive recent momentum.
Several Strong-Performing Top Holdings
Key positions like Avis Budget and PVH have delivered strong year-to-date results, helping support the fund’s overall performance.
Focused Exposure to Consumer and Related Sectors
The fund’s emphasis on consumer cyclical, industrials, and related areas offers targeted exposure to parts of the economy that can benefit when consumer spending is healthy.
Negative Factors
High Sector Concentration in Consumer Cyclical
With most of the portfolio in consumer cyclical stocks, the ETF is more vulnerable to downturns in consumer spending and economic slowdowns.
Limited Geographic Diversification
The fund is almost entirely invested in U.S. companies, providing little protection if the U.S. market struggles compared with other regions.
Relatively High Expense Ratio
The ETF charges a higher fee than many broad index funds, which can modestly reduce long-term returns for investors.

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

FXD Summary

FXD is an exchange-traded fund (ETF) that follows the StrataQuant Consumer Discretionary Index, focusing on U.S. companies that sell non-essential but desirable products and services, like cars, clothing, and leisure activities. It holds well-known names such as Harley-Davidson and Macy’s, along with many other consumer-focused businesses. Investors might consider FXD if they want growth potential tied to consumer spending and diversification across many different retail and leisure companies. However, this ETF can be quite sensitive to the economy, so its price can go up or down sharply when consumer spending changes.
How much will it cost me?The FXD ETF has an expense ratio of 0.61%, which means you’ll pay $6.10 per year for every $1,000 invested. This is higher than the average for ETFs because it is actively managed using a proprietary stock selection strategy to target companies with strong growth potential in the consumer discretionary sector.
What would affect this ETF?The FXD ETF, focused on the consumer discretionary sector, could benefit from economic growth and increased consumer spending, especially in North America, as people tend to spend more on non-essential goods and services during prosperous times. However, it may face challenges during economic downturns or periods of high inflation, which can reduce discretionary spending, and changes in interest rates could impact companies like Delta Air Lines or Target that rely on consumer demand. Additionally, regulatory shifts or supply chain disruptions could negatively affect top holdings such as Mattel or Macy's.

FXD Top 10 Holdings

FXD is leaning hard into U.S. consumer cyclicals, with autos and leisure names doing much of the heavy lifting. Harley-Davidson and Lear have been rising, giving the fund a solid boost, while Delta Air Lines adds steady tailwind from travel demand. Sirius XM and Versant Media are also climbing, helping the communication slice pull its weight. On the flip side, Disney and Lithia Motors are losing steam, acting as mild brakes on performance. Overall, the ETF is sector-focused but not overly tied to any single star performer.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Harley-Davidson1.79%$4.56M$2.50B-2.34%
60
Neutral
PVH1.69%$4.31M$4.10B8.45%
66
Neutral
Sirius XM Holdings1.62%$4.13M$9.72B32.28%
64
Neutral
Penske Automotive Group1.62%$4.12M$10.83B1.58%
71
Outperform
Lear1.61%$4.10M$7.00B56.80%
75
Outperform
Lithia Motors1.58%$4.01M$6.31B-11.20%
76
Outperform
Walt Disney1.58%$4.01M$178.86B-6.12%
75
Outperform
Versant Media Group1.56%$3.97M$6.14B
Delta Air Lines1.52%$3.87M$50.02B58.89%
80
Outperform
Gentex1.50%$3.83M$5.08B10.31%
70
Outperform

FXD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
65.65
Positive
100DMA
67.60
Negative
200DMA
67.41
Negative
Market Momentum
MACD
-0.57
Negative
RSI
52.40
Neutral
STOCH
80.85
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 65.40, equal to the 50-day MA of 65.65, and equal to the 200-day MA of 67.41, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXD.

FXD Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$252.67M0.60%
67
Neutral
$982.59M0.40%
72
Outperform
$861.48M0.48%
70
Outperform
$582.92M0.35%
67
Neutral
$256.99M0.40%
69
Neutral
$225.72M0.57%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXD
First Trust Consumer Discretionary AlphaDEX Fund
66.08
4.24
6.86%
RSPN
Invesco S&P 500 Equal Weight Industrials ETF
REZ
iShares Residential and Multisector Real Estate ETF
XRT
SPDR S&P Retail ETF
RSPD
Invesco S&P 500 Equal Weight Consumer Discretionary ETF
PEJ
Invesco Dynamic Leisure & Entertainment 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.
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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