FXG - ETF AI Analysis

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First Trust Consumer Staples AlphaDEX Fund (FXG)

Rating:66Neutral

Price Target:―

The ETF FXG, focused on consumer staples, has a solid overall rating, reflecting a mix of strong and moderate-performing holdings. Pilgrim's Pride stands out as a key contributor due to its strong financial performance and attractive valuation, despite some margin pressures. On the other hand, Molson Coors has faced significant profitability and revenue challenges, which may have slightly weighed on the ETF's rating. A potential risk factor is the ETF's exposure to companies with mixed financial stability and technical indicators, which could impact overall performance during economic uncertainty.

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)

AUM259.30M

RegionNorth America

Expense Ratio0.63%

Beta0.29

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield2.8%

Asset ClassEquity

Index TrackedStrataQuant Consumer Staples Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume14,306

30 Day Avg. Volume15,091

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

71.81

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering41

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 leans heavily into the Consumer Staples sector, with a focus on companies providing essential goods. Recent performance has been a mixed bag: Tyson Foods is showing steady growth, buoyed by operational improvements, while McKesson’s rising earnings and strategic focus on high-growth areas are driving gains. On the flip side, Conagra Brands and Ingredion are lagging, weighed down by declining revenue and bearish technical trends. With its U.S.-centric portfolio and defensive tilt, FXG offers stability, but some holdings are struggling to keep pace with the sector’s resilience.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
BG	Bunge Global	4.76%	$12.34M	$17.69B	15.64%	66 Neutral
MCK	McKesson	4.49%	$11.64M	$101.24B	41.48%	62 Neutral
TAP	Molson Coors	4.46%	$11.55M	$9.44B	-19.65%	53 Neutral
SFD	Smithfield Foods	4.11%	$10.63M	$8.96B	―	69 Neutral
PPC	Pilgrim's Pride	4.10%	$10.62M	$9.37B	-14.56%	73 Outperform
CAG	Conagra Brands	4.01%	$10.39M	$8.30B	-36.00%	52 Neutral
INGR	Ingredion	3.83%	$9.92M	$7.02B	-20.04%	65 Neutral
PFGC	Performance Food Group	3.73%	$9.66M	$14.37B	8.61%	65 Neutral
COR	Cencora	3.69%	$9.57M	$66.14B	49.73%	70 Neutral
TSN	Tyson Foods	3.65%	$9.44M	$20.23B	0.78%	69 Neutral

FXG Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

61.76

Negative

100DMA

62.35

Negative

200DMA

62.49

Negative

Market Momentum

MACD

0.02

Negative

RSI

46.13

Neutral

STOCH

46.02

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 61.66, equal to the 50-day MA of 61.76, and equal to the 200-day MA of 62.49, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.02 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
FXG	―	―	$259.30M	0.63%	―
FXH	―	―	$932.82M	0.62%	―
IETC	―	―	$914.32M	0.18%	―
RSPN	―	―	$875.79M	0.40%	―
FXR	―	―	$819.47M	0.61%	―
RSPS	―	―	$237.46M	0.40%	―

Performance Comparison

FXG

First Trust Consumer Staples AlphaDEX Fund

61.28

-1.13

-1.81%

FXH

First Trust Health Care AlphaDEX Fund

―

IETC

iShares Evolved US Technology ETF

―

RSPN

Invesco S&P 500 Equal Weight Industrials ETF

―

FXR

First Trust Industrials/Producer Durables AlphaDEX Fund

―

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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