FXD - ETF AI Analysis

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First Trust Consumer Discretionary AlphaDEX Fund (FXD)

Rating:69Neutral

Price Target:―

FXD, the First Trust Consumer Discretionary AlphaDEX Fund, earns a solid overall rating driven largely by strong contributors like Toll Brothers, Gap, and Lear, which show healthy financial performance, supportive valuations, and generally positive technical trends. Some homebuilders such as Lennar and DR Horton, along with names like Sirius XM, face profitability, growth, or bearish technical challenges that modestly weigh on the fund’s appeal. The main risk is its focus on consumer discretionary companies, 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)

AUM274.11M

RegionNorth America

Expense Ratio0.60%

Beta0.96

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.83%

Asset ClassEquity

Index TrackedStrataQuant Consumer Discretionary Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume27,997

30 Day Avg. Volume21,697

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

79.80

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 riding a consumer-discretionary wave powered by a few clear winners. Southwest Airlines and Viking Holdings are both rising, signaling renewed appetite for travel and leisure, while Tapestry adds momentum from the higher-end retail side. Homebuilders like Toll Brothers and PulteGroup are steady contributors, though signs of softer orders mean they’re no longer sprinting. Lennar looks more mixed, with weaker recent trading acting as a small drag. Overall, the fund is heavily tilted toward U.S. consumer cyclical names, making it a focused bet on discretionary spending staying resilient.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
TPR	Tapestry	1.71%	$4.69M	$30.29B	99.68%	69 Neutral
SIRI	Sirius XM Holdings	1.65%	$4.53M	$7.58B	-11.81%	64 Neutral
TOL	Toll Brothers	1.62%	$4.43M	$14.17B	35.15%	77 Outperform
PHM	PulteGroup	1.62%	$4.43M	$24.91B	18.47%	70 Outperform
TNL	Travel + Leisure Co	1.56%	$4.29M	$4.71B	36.42%	73 Outperform
LEA	Lear	1.56%	$4.26M	$6.19B	21.59%	75 Outperform
GAP	Gap Inc	1.55%	$4.25M	$10.12B	0.56%	76 Outperform
LUV	Southwest Airlines	1.55%	$4.25M	$21.57B	42.33%	66 Neutral
LKQ	LKQ	1.52%	$4.17M	$8.03B	-27.46%	68 Neutral
DHI	DR Horton	1.52%	$4.17M	$43.42B	10.37%	66 Neutral

FXD Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

70.01

Negative

100DMA

68.38

Negative

200DMA

66.88

Negative

Market Momentum

MACD

-0.72

Positive

RSI

34.29

Neutral

STOCH

31.02

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXD, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 69.69, equal to the 50-day MA of 70.01, and equal to the 200-day MA of 66.88, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 34.29 is Neutral, neither overbought nor oversold. The STOCH value of 31.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXD.

FXD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXD	―	―	$274.11M	0.60%	69 Neutral
RSPN	―	―	$933.03M	0.40%	72 Outperform
FXH	―	―	$900.20M	0.61%	71 Outperform
XRT	―	―	$633.67M	0.35%	68 Neutral
RSPD	―	―	$279.56M	0.40%	69 Neutral
PEJ	―	―	$258.25M	0.57%	70 Neutral

Performance Comparison

FXD

First Trust Consumer Discretionary AlphaDEX Fund

66.16

7.38

12.56%

RSPN

Invesco S&P 500 Equal Weight Industrials ETF

―

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.

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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