FXG - ETF AI Analysis

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First Trust Consumer Staples AlphaDEX Fund (FXG)

Rating:70Neutral

Price Target:

$68.00

The ETF FXG, which focuses on consumer staples, has a solid overall rating, reflecting a mix of strong performers and some weaker holdings. Leading contributors include Bunge Global, which benefits from positive earnings outlooks and strategic growth initiatives, and Pilgrim's Pride, which boasts robust financial performance and attractive valuation. However, holdings like Cencora and Conagra Brands have faced challenges such as high leverage, declining revenue, and inflationary pressures, which may have slightly weighed on the fund’s rating. A potential risk for FXG is its exposure to companies with mixed financial performance and bearish technical indicators, which could impact overall stability.

Positive Factors

Strong Top Holdings

Several key positions, like Celsius Holdings and McKesson, have delivered strong year-to-date gains, supporting the fund’s overall performance.

Sector Focus on Stability

The ETF’s heavy exposure to the Consumer Defensive sector provides stability during uncertain economic periods.

Consistent Geographic Exposure

With nearly all assets invested in U.S. companies, the fund benefits from the relative stability of the U.S. market.

Negative Factors

Lagging Holdings

Several top holdings, such as Conagra Brands and Molson Coors, have underperformed year-to-date, dragging on the fund’s returns.

High Sector Concentration

Over 80% of the fund is concentrated in the Consumer Defensive sector, limiting diversification across industries.

Above-Average Expense Ratio

The ETF’s expense ratio is higher than many similar funds, reducing the net returns for investors.

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

AUM264.59M

RegionNorth America

Expense Ratio0.63%

Beta0.29

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield2.78%

Asset ClassEquity

Index TrackedStrataQuant Consumer Staples Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume13,379

30 Day Avg. Volume15,093

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

71.73

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering42

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FXG Summary

The First Trust Consumer Staples AlphaDEX Fund (FXG) is an ETF that focuses on the Consumer Staples sector, which includes companies that produce essential goods like food, beverages, and household products. It uses a unique strategy to select stocks with strong growth and value potential, aiming to outperform traditional market indices. Some well-known companies in the fund include Molson Coors and McKesson. This ETF might appeal to investors looking for stability and diversification, as consumer staples tend to perform well even during economic downturns. However, new investors should be aware that the fund’s performance can still fluctuate with the broader market.

How much will it cost me?The expense ratio for FXG is 0.63%, which means you’ll pay $6.30 per year for every $1,000 invested. This is higher than average because FXG is actively managed, using a unique AlphaDEX methodology to select and weight stocks for potential outperformance. Actively managed funds typically have higher costs due to the research and strategy involved.

What would affect this ETF?FXG's focus on consumer staples, a sector known for its stability, could benefit from consistent demand for essential goods during economic uncertainty or downturns. However, rising interest rates or inflation could negatively impact consumer spending and company margins within the sector. Additionally, regulatory changes or shifts in consumer preferences could influence the performance of its top holdings, such as Bunge Global and Molson Coors.

FXG Top 10 Holdings

The FXG fund is firmly rooted in the Consumer Staples sector, with a mix of steady performers and laggards shaping its trajectory. Celsius Holdings is the star of the show, riding strong revenue growth and a PepsiCo partnership to impressive gains, while McKesson and Cencora add stability with their solid financial performance. On the flip side, Conagra Brands and Pilgrim’s Pride are dragging the fund, weighed down by inflationary pressures and operational challenges. With a heavy U.S. focus and a defensive tilt, FXG offers resilience but relies on a few key names to drive momentum.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
BG	Bunge Global	4.97%	$13.09M	$18.32B	8.72%	74 Outperform
MCK	McKesson	4.70%	$12.39M	$106.80B	38.99%	72 Outperform
TAP	Molson Coors	4.36%	$11.50M	$8.74B	-22.21%	56 Neutral
PFGC	Performance Food Group	4.05%	$10.66M	$14.89B	14.84%	63 Neutral
CAG	Conagra Brands	3.99%	$10.51M	$7.99B	-39.73%	64 Neutral
SFD	Smithfield Foods	3.97%	$10.45M	$8.61B	―	69 Neutral
COR	Cencora	3.94%	$10.37M	$69.84B	45.20%	76 Outperform
PPC	Pilgrim's Pride	3.88%	$10.22M	$8.70B	-31.16%	72 Outperform
INGR	Ingredion	3.79%	$9.98M	$6.83B	-28.41%	65 Neutral
REYN	Reynolds Consumer Products	3.47%	$9.14M	$5.23B	-9.33%	75 Outperform

FXG Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

62.70

Negative

100DMA

63.05

Negative

200DMA

63.00

Negative

Market Momentum

MACD

-0.48

Positive

RSI

40.72

Neutral

STOCH

19.10

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXG, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 62.41, equal to the 50-day MA of 62.70, and equal to the 200-day MA of 63.00, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 19.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXG.

FXG Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXG	―	―	$264.59M	0.63%	70 Neutral
IETC	―	―	$993.40M	0.18%	75 Outperform
FXH	―	―	$913.09M	0.62%	71 Outperform
REZ	―	―	$777.74M	0.48%	69 Neutral
RSPH	―	―	$718.47M	0.40%	71 Outperform
RSPS	―	―	$226.02M	0.40%	68 Neutral

Performance Comparison

FXG

First Trust Consumer Staples AlphaDEX Fund

61.27

-5.56

-8.32%

IETC

iShares Evolved US Technology ETF

―

FXH

First Trust Health Care AlphaDEX Fund

―

REZ

iShares Residential and Multisector Real Estate ETF

―

RSPH

Invesco S&P 500 Equal Weight Health Care ETF

―

RSPS

Invesco S&P 500 Equal Weight Consumer Staples 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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