FXD - ETF AI Analysis

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First Trust Consumer Discretionary AlphaDEX Fund (FXD)

Rating:68Neutral

Price Target:―

The ETF FXD, which focuses on consumer discretionary stocks, has a solid overall rating, reflecting a mix of strong performers and some challenges among its holdings. Top contributors like Expedia and Delta Air Lines drive the fund’s rating with their robust financial health, strategic initiatives, and positive earnings momentum. However, weaker holdings like Viking Holdings and Carvana, which face financial stability concerns and valuation risks, slightly hold back the fund’s overall performance. The main risk factor for FXD is its concentration in the consumer discretionary sector, which can be sensitive to economic cycles.

Positive Factors

Strong Top Holdings

Several top holdings, such as Ralph Lauren and Somnigroup International, have delivered strong year-to-date performance, supporting the ETF's overall returns.

Sector Focus on Consumer Cyclical

The ETF's heavy exposure to consumer cyclical stocks positions it to benefit from economic growth and increased consumer spending.

Moderate Asset Base

The fund's assets under management are stable, indicating consistent investor interest and liquidity.

Negative Factors

Underperforming Holdings

Several key positions, including Target and Columbia Sportswear, have struggled year-to-date, dragging on the fund's performance.

High Sector Concentration

Over 73% of the portfolio is concentrated in consumer cyclical stocks, increasing vulnerability to sector-specific downturns.

Limited Geographic Diversification

The ETF is overwhelmingly focused on U.S. companies, offering minimal exposure to international markets.

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

AUM322.49M

RegionNorth America

Expense Ratio0.61%

Beta0.93

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.77%

Asset ClassEquity

Index TrackedStrataQuant Consumer Discretionary Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume27,565

30 Day Avg. Volume17,626

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

77.54

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering118

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FXD Summary

The First Trust Consumer Discretionary AlphaDEX Fund (FXD) is an ETF that focuses on companies in the consumer discretionary sector, which includes businesses offering non-essential but desirable goods and services like luxury items and travel. It follows the StrataQuant Consumer Discretionary Index and uses a unique method to select stocks with strong growth potential. Some well-known companies in the fund include Target and Delta Air Lines. Investors might consider FXD for diversification and exposure to consumer spending trends. However, since it relies heavily on consumer cyclical industries, its performance can fluctuate with economic 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

The FXD ETF leans heavily into the consumer discretionary sector, with a strong focus on U.S.-based companies. Carvana is a standout performer, riding a wave of bullish momentum thanks to its robust financial performance, though its high valuation raises caution flags. Macy’s and General Motors are also contributing positively, with steady growth and strategic progress bolstering their outlooks. On the flip side, Mattel’s slower revenue growth and profitability challenges are holding it back. Overall, the fund’s positioning reflects a bet on the cyclical nature of consumer spending, with a mix of rising stars and a few laggards.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LEN	Lennar	1.59%	$5.16M	$27.67B	-15.44%	59 Neutral
W	Wayfair	1.58%	$5.14M	$14.79B	157.26%	52 Neutral
PHM	PulteGroup	1.54%	$5.02M	$25.77B	14.45%	70 Outperform
GAP	Gap Inc	1.51%	$4.92M	$10.57B	17.68%	76 Outperform
LKQ	LKQ	1.51%	$4.92M	$8.55B	-9.02%	68 Neutral
CVNA	Carvana Co	1.50%	$4.88M	$96.28B	129.24%	66 Neutral
DHI	DR Horton	1.50%	$4.86M	$42.61B	6.87%	66 Neutral
SIRI	Sirius XM Holdings	1.49%	$4.85M	$7.21B	2.90%	64 Neutral
LEA	Lear	1.49%	$4.83M	$6.54B	38.82%	75 Outperform
LUV	Southwest Airlines	1.47%	$4.79M	$22.20B	29.59%	66 Neutral

FXD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

67.37

Positive

100DMA

67.64

Positive

200DMA

64.30

Positive

Market Momentum

MACD

0.80

Negative

RSI

66.93

Neutral

STOCH

84.82

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 69.58, equal to the 50-day MA of 67.37, and equal to the 200-day MA of 64.30, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 84.82 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
FXD	―	―	$322.49M	0.61%	―
FXH	―	―	$983.68M	0.62%	―
IETC	―	―	$945.03M	0.18%	―
XRT	―	―	$653.00M	0.35%	―
PEJ	―	―	$258.31M	0.57%	―
RSPD	―	―	$232.19M	0.40%	―

Performance Comparison

FXD

First Trust Consumer Discretionary AlphaDEX Fund

71.60

8.26

13.04%

FXH

First Trust Health Care AlphaDEX Fund

―

IETC

iShares Evolved US Technology ETF

―

XRT

SPDR S&P Retail ETF

―

PEJ

Invesco Dynamic Leisure & Entertainment ETF

―

RSPD

Invesco S&P 500 Equal Weight Consumer Discretionary 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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