FXH - ETF AI Analysis

Top Page

First Trust Health Care AlphaDEX Fund (FXH)

Rating:71Outperform

Price Target:―

FXH, the First Trust Health Care AlphaDEX Fund, earns a solid overall rating driven by strong contributors like Incyte, Pfizer, Biogen, Universal Health Services, and Eli Lilly, which bring solid financial performance, positive earnings outlooks, and generally supportive technical trends. However, weaker names such as Organon and Ionis Pharmaceuticals, which face profitability, leverage, and technical challenges, weigh on the fund, and investors should note the fund’s concentrated exposure to the healthcare sector as a key risk factor.

Positive Factors

Strong Lead Holding

The largest position, Organon, has shown strong gains this year, giving the fund a helpful performance boost.

Broad Health Care Exposure

The ETF holds a wide mix of health care companies, including drug makers, service providers, and equipment firms, which helps spread risk within the sector.

Solid Recent Performance

The fund has delivered steady gains over the past three months and year-to-date, showing resilient performance in its niche.

Negative Factors

High Sector Concentration

Almost all assets are invested in health care, so the fund is heavily exposed to swings in that single sector.

U.S.-Only Market Focus

With nearly all holdings in U.S. companies, the ETF offers little geographic diversification if the U.S. market or health care policy environment weakens.

Above-Average Expense Ratio

The fund charges a relatively high fee for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

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

AUM854.72M

RegionNorth America

Expense Ratio0.61%

Beta0.68

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.79%

Asset ClassEquity

Index TrackedStrataQuant Health Care Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume17,372

30 Day Avg. Volume26,490

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

139.12

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering77

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FXH Summary

FXH is an exchange-traded fund that focuses on U.S. health care stocks and follows the StrataQuant Health Care Index. It holds a mix of companies involved in drugs, medical testing, equipment, and health services. Well-known names in the fund include Pfizer and Cardinal Health. Someone might invest in FXH to seek long-term growth from an aging population and ongoing medical innovation, while still spreading money across many health care companies instead of picking just one stock. A key risk is that it is heavily concentrated in the health care sector, so it can rise or fall with 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 health care play, and its story right now is driven by a mix of rising hospital operators and steadier big pharma. HCA Healthcare and Acadia Healthcare are doing the heavy lifting, with strong recent momentum that helps power the fund. Biogen and Cardinal Health are also pulling their weight, adding a steady beat from biotech and distribution. On the flip side, Organon has been lagging as operational and governance issues weigh on sentiment, while Insmed has stumbled recently, acting as a small drag. With all major holdings based in the U.S., this ETF is a focused bet on the American health care engine.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ACHC	Acadia Healthcare	3.90%	$33.28M	$2.17B	-17.59%	61 Neutral
HCA	HCA Healthcare	2.69%	$22.92M	$119.18B	66.87%	70 Neutral
PFE	Pfizer	2.51%	$21.43M	$151.14B	3.34%	74 Outperform
CAH	Cardinal Health	2.49%	$21.21M	$51.08B	69.59%	66 Neutral
BIIB	Biogen	2.43%	$20.71M	$26.64B	30.20%	74 Outperform
INCY	Incyte	2.21%	$18.81M	$18.42B	36.37%	81 Outperform
LLY	Eli Lilly & Co	2.16%	$18.40M	$930.72B	21.09%	72 Outperform
IONS	Ionis Pharmaceuticals	2.12%	$18.07M	$11.76B	115.99%	61 Neutral
AMGN	Amgen	2.11%	$17.97M	$197.41B	16.74%	77 Outperform
OGN	Organon	2.08%	$17.78M	$1.65B	-58.52%	53 Neutral

FXH Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

114.94

Negative

100DMA

114.28

Negative

200DMA

109.42

Negative

Market Momentum

MACD

-1.62

Positive

RSI

27.85

Positive

STOCH

5.85

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXH, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 113.51, equal to the 50-day MA of 114.94, and equal to the 200-day MA of 109.42, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 27.85 is Positive, neither overbought nor oversold. The STOCH value of 5.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXH.

FXH Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXH	―	―	$854.72M	0.61%	71 Outperform
IHE	―	―	$996.54M	0.38%	71 Outperform
RSPH	―	―	$714.09M	0.40%	71 Outperform
PINK	―	―	$250.79M	0.51%	66 Neutral
PSCH	―	―	$120.40M	0.29%	67 Neutral
PTH	―	―	$117.29M	0.60%	58 Neutral

Performance Comparison

FXH

First Trust Health Care AlphaDEX Fund

107.94

3.19

3.05%

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.

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: ―

Table of Contents