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FXH - ETF AI Analysis

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FXH

First Trust Health Care AlphaDEX Fund (FXH)

Rating:71Outperform
Price Target:
FXH, the First Trust Health Care AlphaDEX Fund, earns a solid overall rating, mainly driven by strong holdings like Merck, Incyte, United Therapeutics, and Penumbra, which show robust financial performance, healthy growth prospects, and generally supportive technical trends. However, some positions such as Acadia Healthcare and Ionis Pharmaceuticals face profitability, leverage, and cash flow challenges, and several growth-focused biotech names lack dividends or show signs of potential overvaluation, creating added risk. The main risk factor is the fund’s concentration in healthcare and biotech, where regulatory changes, competition, and stock-specific volatility can significantly impact returns.
Positive Factors
Healthy Recent Momentum
The ETF has shown strong short-term gains over the past month, indicating improving recent performance.
Mix of Strong and Steady Top Holdings
Several of the largest positions have delivered strong or steady year-to-date results, helping support the fund’s overall returns.
Focused Health Care Exposure
Concentrating almost entirely on U.S. health care companies gives investors targeted access to a key defensive sector of the economy.
Negative Factors
High Expense Ratio
The fund charges relatively high fees compared with many broad market ETFs, which can eat into long-term returns.
Sector Concentration Risk
With nearly all assets in the health care sector, the ETF is vulnerable to downturns or regulatory changes affecting that industry.
Limited Geographic Diversification
Almost all holdings are in U.S. companies, offering little protection if the U.S. market or health care policy environment weakens.

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

FXH Summary

FXH is an exchange-traded fund (ETF) that focuses on U.S. health care stocks, following the StrataQuant Health Care Index. It holds a mix of companies across the health care world, including insurers like Cigna and Humana, drug makers, medical device firms, and health care service providers. Someone might invest in FXH to seek long-term growth from an aging population and ongoing medical innovation, while getting diversification across many health care companies in a single investment. A key risk is that it is heavily concentrated in the health care sector, so it can rise or fall with changes affecting that industry.
How much will it cost me?The expense ratio for FXH is 0.62%, which means you’ll pay $6.20 per year for every $1,000 invested. This is higher than average because FXH is actively managed, using a specialized methodology to select and weight health care stocks for potential outperformance. Actively managed funds typically have higher costs due to the research and strategy involved.
What would affect this ETF?The FXH ETF, focused on the U.S. health care sector, could benefit from ongoing advancements in medical technology, increased demand for health care services due to aging populations, and innovation within its top holdings like biotechnology and pharmaceutical companies. However, it may face challenges from regulatory changes, pricing pressures in the health care industry, and broader economic conditions such as rising interest rates, which could impact growth-focused investments. Its strong exposure to North America provides stability but limits diversification outside the U.S.

FXH Top 10 Holdings

FXH is a pure U.S. health care play, and its story right now is a tug-of-war between rising drug and device names and lagging insurers and labs. Biotech and specialty players like Exelixis, Globus Medical, and Zimmer Biomet are doing much of the heavy lifting, with steady-to-rising momentum that helps keep the fund’s pulse strong. On the flip side, Humana and Elevance Health have been losing steam, while Bio-Rad looks mixed at best, creating a drag that tempers the fund’s otherwise healthy sector tilt.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Organon3.78%$33.04M$2.93B3.46%
53
Neutral
Humana2.77%$24.25M$25.84B-15.04%
69
Neutral
Elevance Health2.61%$22.87M$74.87B-13.94%
76
Outperform
Globus Medical2.34%$20.45M$12.81B29.03%
82
Outperform
Molina Healthcare2.31%$20.22M$9.17B-44.03%
71
Outperform
Solventum Corporation2.30%$20.09M$11.88B5.62%
73
Outperform
Cigna2.28%$19.92M$72.68B-15.60%
72
Outperform
Exelixis2.24%$19.57M$11.42B16.16%
78
Outperform
Bio-Rad Laboratories2.22%$19.38M$7.77B19.62%
54
Neutral
Zimmer Biomet Holdings2.20%$19.25M$17.67B-9.01%
73
Outperform

FXH Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
111.33
Positive
100DMA
113.29
Negative
200DMA
110.78
Positive
Market Momentum
MACD
0.53
Positive
RSI
51.53
Neutral
STOCH
30.41
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 112.80, equal to the 50-day MA of 111.33, and equal to the 200-day MA of 110.78, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 30.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXH.

FXH Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$874.18M0.61%
71
Outperform
$951.14M0.38%
70
Neutral
$705.14M0.40%
71
Outperform
$243.15M0.51%
67
Neutral
$127.46M0.29%
67
Neutral
$125.57M0.60%
58
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXH
First Trust Health Care AlphaDEX Fund
112.45
13.35
13.47%
IHE
iShares U.S. Pharmaceuticals ETF
RSPH
Invesco S&P 500 Equal Weight Health Care ETF
PINK
Simplify Health Care ETF
PSCH
Invesco S&P SmallCap Health Care ETF
PTH
Invesco DWA Healthcare Momentum 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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