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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 with a mix of strong and weaker holdings. Standout positions like Gap, Lululemon, Lithia Motors, and Macy’s support the fund’s quality through robust financial performance, attractive valuations, and generally positive outlooks, while names like Avis Budget, with high leverage, negative profitability, and bearish momentum, weigh on the overall assessment. The main risk factor 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 Top Holdings
Many of the largest positions, including several homebuilders and retailers, have shown strong year-to-date gains, helping support the fund’s overall performance.
Targeted Consumer Exposure
The fund’s heavy focus on consumer cyclical companies gives investors concentrated exposure to businesses that can benefit when consumer spending is healthy.
Broad U.S. Coverage Within the Theme
With nearly all assets invested in U.S. companies across several related industries, the ETF offers diversified exposure within the domestic consumer and related sectors.
Negative Factors
High Sector Concentration
A large majority of the portfolio is in consumer cyclical stocks, which can be more volatile and sensitive to economic slowdowns.
Limited Geographic Diversification
Almost all holdings are U.S.-based, so the fund offers little protection if the U.S. market or economy weakens.
Above-Average Expense Ratio
The ETF charges a relatively high fee for a sector fund, which can eat into long-term returns compared with lower-cost alternatives.

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 goods and services, like cars, homebuilders, and retailers. It holds many consumer-focused names, including Lennar and Gap Inc, and also has some exposure to industrials and communication services. Someone might invest in FXD to benefit from potential growth when consumer spending is strong and to get diversified exposure across many consumer-related companies. A key risk is that it is heavily tied to the consumer discretionary sector, so it can rise or fall sharply with changes in the economy and spending habits.
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 firmly hitched to the U.S. consumer discretionary engine, with a tilt toward housing, travel, and leisure names. Homebuilders like PulteGroup and Toll Brothers have been losing altitude lately, weighing on the fund after a strong run earlier in the cycle. Travel and leisure plays such as Travel + Leisure, Southwest Airlines, and Viking Holdings are also lagging, acting more like a headwind than a tailwind. On the brighter side, Sirius XM has been a steadier, rising contributor, but overall the portfolio feels more pressured than powered right now.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
PVH1.79%$4.75M$4.17B31.73%
66
Neutral
Avis Budget1.68%$4.45M$10.47B319.19%
41
Neutral
Harley-Davidson1.54%$4.08M$2.53B5.44%
60
Neutral
Gap Inc1.50%$3.97M$9.82B38.74%
76
Outperform
Lululemon Athletica1.49%$3.96M$20.10B-35.11%
75
Outperform
Lithia Motors1.47%$3.89M$6.21B-8.88%
76
Outperform
Macy's1.45%$3.85M$5.05B67.16%
74
Outperform
Boyd Gaming1.45%$3.85M$6.55B35.04%
71
Outperform
Versant Media Group1.44%$3.82M$5.58B
DR Horton1.44%$3.81M$41.64B21.95%
66
Neutral

FXD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
67.13
Negative
100DMA
67.83
Negative
200DMA
67.10
Negative
Market Momentum
MACD
-0.36
Negative
RSI
58.22
Neutral
STOCH
91.52
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 64.10, equal to the 50-day MA of 67.13, and equal to the 200-day MA of 67.10, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 91.52 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
$262.31M0.60%
67
Neutral
$916.58M0.61%
67
Neutral
$867.41M0.61%
71
Outperform
$397.67M0.35%
67
Neutral
$276.64M0.40%
69
Neutral
$240.50M0.57%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXD
First Trust Consumer Discretionary AlphaDEX Fund
67.09
13.64
25.52%
FXU
First Trust Utilities AlphaDEX Fund
FXH
First Trust Health Care 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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