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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 reasonably solid consumer discretionary ETF, supported by several strong holdings with healthy financials and fair valuations. Companies like Fox Corporation, Gap, Lululemon, and Dillard’s contribute positively through robust performance, strategic growth initiatives, and generally supportive technical trends, while names such as Sirius XM and Thor Industries add some drag due to weaker growth, profitability, or technical signals. The main risk is that the fund is concentrated in the consumer discretionary sector, which can be more sensitive to economic cycles and shifts in consumer spending.
Positive Factors
Sector Focus on Consumer Discretionary
The fund is heavily focused on consumer cyclical companies, giving investors targeted exposure to businesses that can benefit when consumer spending is strong.
Mix of Industries Within the Main Sector
Holdings span areas like retail, media, transportation, and leisure, which adds some diversification within the consumer-focused theme.
Meaningful Fund Size
The ETF has a sizable asset base, which can help support trading liquidity and ongoing fund operations for investors.
Negative Factors
High Expense Ratio
The fund’s fees are relatively high compared with many broad market ETFs, which can reduce investors’ net returns over time.
Weak Performance in Several Top Holdings
Many of the largest positions have shown weak year-to-date performance, which can drag on the fund’s overall results.
Heavy Concentration in U.S. Consumer Cyclical Stocks
The ETF is almost entirely invested in U.S. companies and strongly tilted toward one sector, making it more sensitive to downturns in the U.S. consumer economy.

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

FXD Summary

FXD is an exchange-traded fund that follows the StrataQuant Consumer Discretionary Index, focusing on companies that sell non-essential but desirable products and services, like clothing, entertainment, and travel. It holds well-known names such as Fox, Gap, Lyft, Mattel, Lululemon, and Macy’s, giving investors a broad mix of consumer-focused businesses in one investment. Someone might consider FXD for growth potential tied to consumer spending and for diversification within the consumer discretionary sector. A key risk is that these companies are sensitive to the economy, so the ETF’s value can rise or fall sharply with changes in consumer confidence and market conditions.
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 a pure U.S. consumer-discretionary play, and its story right now is a tug-of-war between rising and lagging names. Lear and Sirius XM have been climbing steadily, helping to power the fund, while traditional retailers like Dillard’s and Gap are losing steam and weighing on returns. Lululemon, once a market darling, has seen more mixed, downward-leaning action lately, adding to the drag. With heavy exposure to cyclical consumer names and media, FXD’s performance is closely tied to how confident U.S. shoppers and advertisers feel.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Dillard's1.71%$4.67M$9.19B30.84%
76
Outperform
Fox1.66%$4.53M$23.06B3.02%
77
Outperform
Lyft1.65%$4.51M$6.02B16.34%
69
Neutral
Macy's1.62%$4.43M$6.53B118.07%
74
Outperform
Gap Inc1.62%$4.41M$7.23B4.97%
76
Outperform
Lululemon Athletica1.60%$4.36M$14.11B-37.05%
75
Outperform
Mattel1.58%$4.31M$4.39B-12.52%
75
Outperform
SharkNinja, Inc.1.55%$4.24M$22.89B38.10%
76
Outperform
Lithia Motors1.53%$4.19M$8.47B32.85%
76
Outperform
Thor Industries1.52%$4.15M$3.90B-16.87%
69
Neutral

FXD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
68.64
Positive
100DMA
67.07
Positive
200DMA
67.61
Positive
Market Momentum
MACD
0.60
Negative
RSI
57.57
Neutral
STOCH
63.29
Neutral
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 69.31, equal to the 50-day MA of 68.64, and equal to the 200-day MA of 67.61, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.29 is Neutral, 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
$269.17M0.60%
67
Neutral
$874.29M0.48%
70
Outperform
$837.91M0.61%
67
Neutral
$416.59M0.35%
66
Neutral
$328.92M0.40%
69
Neutral
$255.86M0.57%
63
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXD
First Trust Consumer Discretionary AlphaDEX Fund
71.78
7.52
11.70%
REZ
iShares Residential and Multisector Real Estate ETF
FXU
First Trust Utilities AlphaDEX Fund
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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