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FXG - ETF AI Analysis

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FXG

First Trust Consumer Staples AlphaDEX Fund (FXG)

Rating:67Neutral
Price Target:
FXG’s rating suggests it is a solid but not outstanding consumer staples ETF, supported by several financially strong companies. Key holdings like Coca-Cola Bottling Co Consolidated and Pilgrim’s Pride contribute positively through strong financial performance and shareholder-friendly actions, while names like McKesson and Cencora add earnings strength but also bring risks from high leverage and potential overvaluation. The main risk factor is that many top holdings show bearish or weak technical trends and valuation concerns, which could limit near-term upside even though the underlying businesses are generally stable.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in the most recent month, indicating positive recent momentum.
Resilient Consumer Staples Focus
With most of the portfolio in consumer defensive companies, the fund targets businesses that tend to hold up better during economic slowdowns.
Healthy Top Holdings
Most of the largest positions, including names like Bunge Global and Casey's General, have delivered strong year-to-date performance that supports the fund’s returns.
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 options.
Concentration in One Sector
A heavy tilt toward consumer defensive stocks means the fund is less diversified and more exposed to risks specific to that sector.
Limited Geographic Diversification
With almost all assets invested in U.S. companies, the ETF offers little exposure to international markets.

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 and uses a rules-based approach to pick and weight them. Well-known names in the fund include General Mills and McKesson. Someone might invest in FXG to add stability and diversification to their portfolio, since people tend to keep buying these products in good and bad economies. A key risk is that it is concentrated in consumer staples, so it can still go up and down with that sector.
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 firmly planted in U.S. consumer staples, with food and beverage names setting the tone. Darling Ingredients has been the fund’s quiet engine, rising steadily in recent months, while Coca-Cola Bottling and Casey’s General Stores are also adding some fizz to returns. On the flip side, Ingredion and Cencora have been losing steam, and Pilgrim’s Pride has clearly been dragging the fund lately. Overall, performance is being driven by a handful of rising staples players, but a few laggards are keeping the party from really taking off.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Coca-Cola Bottling Co Consolidated4.34%$10.71M$13.54B45.80%
72
Outperform
Smithfield Foods4.28%$10.55M$11.50B47.95%
69
Neutral
Seaboard4.20%$10.34M$5.55B127.94%
73
Outperform
Ingredion4.17%$10.27M$7.22B-11.77%
65
Neutral
Casey's General4.15%$10.24M$27.28B61.44%
68
Neutral
McKesson4.10%$10.10M$106.03B25.56%
62
Neutral
Darling Ingredients4.06%$10.00M$9.73B111.42%
69
Neutral
Pilgrim's Pride3.84%$9.48M$8.42B-32.89%
73
Outperform
Boston Beer3.66%$9.02M$2.69B4.74%
68
Neutral
Freshpet3.60%$8.88M$3.18B-19.19%
66
Neutral

FXG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
65.52
Negative
100DMA
63.60
Positive
200DMA
62.98
Positive
Market Momentum
MACD
-0.06
Negative
RSI
54.72
Neutral
STOCH
89.20
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 63.57, equal to the 50-day MA of 65.52, and equal to the 200-day MA of 62.98, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXG.

FXG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$249.65M0.63%
67
Neutral
$926.43M0.61%
67
Neutral
$868.17M0.61%
71
Outperform
$824.13M0.48%
70
Outperform
$814.94M0.40%
72
Outperform
$250.49M0.40%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXG
First Trust Consumer Staples AlphaDEX Fund
64.97
2.66
4.27%
FXU
First Trust Utilities AlphaDEX Fund
FXH
First Trust Health Care AlphaDEX Fund
REZ
iShares Residential and Multisector Real Estate ETF
RSPN
Invesco S&P 500 Equal Weight Industrials 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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