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FXG - ETF AI Analysis

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FXG

First Trust Consumer Staples AlphaDEX Fund (FXG)

Rating:68Neutral
Price Target:
FXG, the First Trust Consumer Staples AlphaDEX Fund, earns a solid overall rating driven by strong, financially healthy holdings like Seaboard and Coca-Cola Bottling Co Consolidated, which benefit from robust performance and supportive corporate actions such as share repurchases. However, some positions like McKesson, with leverage and profitability concerns, and names facing valuation or technical risks, slightly weigh on the fund’s appeal. The main risk factor is that many top holdings show signs of being overbought or overvalued, which could lead to short-term volatility even though the underlying consumer staples focus is generally defensive.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating that its strategy has recently been working well for investors.
Leading Holdings Showing Strong Momentum
Several of the largest positions, such as Casey's General, Smithfield Foods, Seaboard, and Darling Ingredients, have posted strong gains, helping drive the fund’s overall results.
Defensive Sector Focus
Heavy exposure to consumer defensive companies can provide some resilience during market downturns, as these businesses tend to sell everyday essentials.
Negative Factors
High Expense Ratio
The fund charges a relatively high fee for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
Concentrated in Consumer Staples and the U.S.
With most assets in U.S. consumer defensive stocks and very limited exposure outside the country, investors face less diversification across sectors and regions.
Not All Top Holdings Are Performing Well
At least one major holding, such as Pilgrim's Pride, has shown weak performance this year, which can drag on the fund’s overall returns.

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

FXG Summary

FXG is an ETF that follows the StrataQuant Consumer Staples Index, focusing on companies that sell everyday essentials like food, drinks, and household products. It mainly holds U.S. consumer staples stocks, including well-known names such as McKesson and Coca-Cola Bottling. Investors might consider FXG if they want a more stable corner of the stock market that can help smooth out ups and downs, while still offering growth potential from a mix of different companies. A key risk is that it is concentrated in consumer staples, so it can still fall if that sector struggles.
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

FXG is leaning heavily into U.S. consumer staples, with a clear tilt toward food, beverages, and everyday essentials rather than flashy growth stories. Darling Ingredients has been a key engine lately, rising strongly and giving the fund some extra horsepower, while Casey’s General Stores, Smithfield Foods, and Seaboard are also pulling their weight with steady-to-strong gains. On the softer side, Pilgrim’s Pride has been lagging and Freshpet’s performance has been mixed, slightly tugging on the brakes but not enough to derail this defensively positioned, staples-focused portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Casey's General4.90%$11.71M$31.51B82.82%
68
Neutral
Coca-Cola Bottling Co Consolidated4.57%$10.94M$13.96B84.45%
72
Outperform
Darling Ingredients4.35%$10.40M$10.22B98.34%
69
Neutral
Seaboard4.13%$9.87M$5.35B117.75%
73
Outperform
Smithfield Foods3.98%$9.51M$10.47B17.74%
69
Neutral
Ingredion3.97%$9.48M$6.74B-20.02%
65
Neutral
McKesson3.90%$9.33M$98.95B14.26%
62
Neutral
Freshpet3.61%$8.62M$3.12B-19.64%
66
Neutral
Post Holdings3.51%$8.40M$4.98B-8.59%
64
Neutral
Flowers Foods3.43%$8.19M$1.77B-52.12%
69
Neutral

FXG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
64.79
Negative
100DMA
64.13
Negative
200DMA
63.16
Positive
Market Momentum
MACD
-0.03
Positive
RSI
43.29
Neutral
STOCH
43.84
Neutral
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 64.60, equal to the 50-day MA of 64.79, and equal to the 200-day MA of 63.16, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 43.84 is Neutral, 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
$240.85M0.63%
68
Neutral
$993.58M0.40%
72
Outperform
$892.66M0.61%
67
Neutral
$870.98M0.61%
70
Outperform
$846.61M0.48%
70
Outperform
$234.80M0.40%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXG
First Trust Consumer Staples AlphaDEX Fund
63.64
0.91
1.45%
RSPN
Invesco S&P 500 Equal Weight Industrials ETF
FXU
First Trust Utilities AlphaDEX Fund
FXH
First Trust Health Care AlphaDEX Fund
REZ
iShares Residential and Multisector Real Estate 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.
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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