FXH - ETF AI Analysis

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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, Eli Lilly, Biogen, and Universal Health Services, which combine solid financial performance, growth pipelines, and generally positive earnings outlooks. However, weaker names such as Organon and Acadia Healthcare, which face profitability, leverage, and technical challenges, along with pockets of high debt and legal or operational risks across several holdings, prevent the fund from scoring even higher and highlight the main risk of owning a portfolio exposed to financially stretched healthcare companies.

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)

AUM917.66M

RegionNorth America

Expense Ratio0.62%

Beta0.66

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.74%

Asset ClassEquity

Index TrackedStrataQuant Health Care Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume23,100

30 Day Avg. Volume28,590

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

135.50

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 U.S. health care play, and its story right now is about stock pickers leaning into innovators while managing a few trouble spots. Medpace, Natera, and Incyte have been doing the heavy lifting, with rising momentum tied to strong growth and upbeat earnings buzz. Cardinal Health has also been a quiet workhorse, helping steady the ship despite some valuation worries. On the flip side, Acadia Healthcare and Ionis look more like dead weight lately, with weaker trends that keep this otherwise healthy portfolio from really sprinting.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ACHC	Acadia Healthcare	2.61%	$24.00M	$1.56B	-58.54%	61 Neutral
HCA	HCA Healthcare	2.49%	$22.88M	$119.64B	64.44%	70 Neutral
BIIB	Biogen	2.40%	$22.05M	$28.49B	40.12%	74 Outperform
CAH	Cardinal Health	2.38%	$21.90M	$52.94B	74.88%	66 Neutral
PFE	Pfizer	2.37%	$21.79M	$155.62B	3.71%	74 Outperform
UHS	Universal Health	2.32%	$21.31M	$14.70B	24.88%	74 Outperform
IONS	Ionis Pharmaceuticals	2.31%	$21.23M	$13.32B	154.34%	61 Neutral
OGN	Organon	2.30%	$21.19M	$1.94B	-52.07%	53 Neutral
INCY	Incyte	2.26%	$20.81M	$20.50B	42.52%	81 Outperform
LLY	Eli Lilly & Co	2.09%	$19.24M	$962.75B	17.19%	72 Outperform

FXH Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

115.45

Positive

100DMA

113.94

Positive

200DMA

108.40

Positive

Market Momentum

MACD

-0.24

Negative

RSI

52.29

Neutral

STOCH

81.34

Negative

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 115.12, equal to the 50-day MA of 115.45, and equal to the 200-day MA of 108.40, indicating a bullish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 81.34 is Negative, 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
FXH	―	―	$917.66M	0.62%	―
RSPH	―	―	$764.87M	0.40%	―
IHF	―	―	$729.50M	0.38%	―
PINK	―	―	$291.87M	0.51%	―
PSCH	―	―	$140.22M	0.29%	―
PTH	―	―	$119.46M	0.60%	―

Performance Comparison

FXH

First Trust Health Care AlphaDEX Fund

115.65

8.01

7.44%

RSPH

Invesco S&P 500 Equal Weight Health Care ETF

―

IHF

iShares U.S. Healthcare Providers 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: ―

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