FXD - ETF AI Analysis

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First Trust Consumer Discretionary AlphaDEX Fund (FXD)

Rating:68Neutral

Price Target:―

FXD’s rating suggests it is a generally solid consumer discretionary ETF with a mix of strong and more challenged holdings. High-quality names like Ralph Lauren, Toll Brothers, Gap, and Lear support the fund’s rating through strong financial performance, reasonable valuations, and positive technical or strategic outlooks. However, weaker holdings such as Wayfair and Lennar, which face financial instability and profitability or momentum challenges, along with the fund’s concentration in the economically sensitive consumer discretionary sector, introduce notable risk.

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)

AUM310.28M

RegionNorth America

Expense Ratio0.61%

Beta0.94

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.8%

Asset ClassEquity

Index TrackedStrataQuant Consumer Discretionary Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume19,885

30 Day Avg. Volume18,181

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

79.69

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering118

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 leaning hard into U.S. consumer cyclicals, with homebuilders like Lennar, PulteGroup, Toll Brothers, and DR Horton setting much of the tone. These names have been generally rising this year, though some are showing hints of fatigue in the near term. On the flashier side, Carvana and Wayfair have been sprinting higher recently, adding a shot of high-octane growth but also extra volatility. Gap is more of a mixed story, lately losing a bit of steam. Overall, the fund is concentrated in U.S. discretionary spending, not global diversification.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LUV	Southwest Airlines	1.65%	$5.11M	$24.58B	54.74%	66 Neutral
GAP	Gap Inc	1.57%	$4.86M	$10.41B	16.24%	76 Outperform
LKQ	LKQ	1.56%	$4.84M	$8.41B	-12.14%	68 Neutral
TOL	Toll Brothers	1.53%	$4.75M	$13.73B	6.39%	77 Outperform
PHM	PulteGroup	1.53%	$4.75M	$24.38B	9.94%	70 Outperform
LEN	Lennar	1.53%	$4.73M	$26.76B	-16.68%	59 Neutral
DHI	DR Horton	1.48%	$4.60M	$43.12B	4.89%	66 Neutral
W	Wayfair	1.48%	$4.58M	$13.49B	113.95%	52 Neutral
LEA	Lear	1.47%	$4.55M	$6.07B	24.44%	75 Outperform
SIRI	Sirius XM Holdings	1.46%	$4.53M	$6.85B	-15.24%	64 Neutral

FXD Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

68.91

Negative

100DMA

67.98

Positive

200DMA

65.43

Positive

Market Momentum

MACD

0.02

Positive

RSI

43.11

Neutral

STOCH

11.53

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXD, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 70.58, equal to the 50-day MA of 68.91, and equal to the 200-day MA of 65.43, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 11.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FXD.

FXD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXD	―	―	$310.28M	0.61%	―
FXH	―	―	$964.10M	0.62%	―
RSPN	―	―	$928.25M	0.40%	―
XRT	―	―	$486.49M	0.35%	―
PEJ	―	―	$255.94M	0.57%	―
RSPD	―	―	$228.28M	0.40%	―

Performance Comparison

FXD

First Trust Consumer Discretionary AlphaDEX Fund

68.83

3.56

5.45%

FXH

First Trust Health Care AlphaDEX Fund

―

RSPN

Invesco S&P 500 Equal Weight Industrials 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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