FXH - ETF AI Analysis

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First Trust Health Care AlphaDEX Fund (FXH)

Rating:69Neutral

Price Target:

$122.00

The ETF FXH, managed by First Trust, reflects a solid overall rating driven by strong contributions from holdings like Globus Medical (GMED) and Incyte (INCY). These companies stand out due to their robust financial performance, strategic growth initiatives, and positive earnings call sentiment, which bolster the fund's quality. However, weaker holdings such as Insmed (INSM) and Ionis Pharmaceuticals (IONS), which face financial performance challenges and valuation concerns, slightly weigh down the ETF's rating. A key risk factor is the fund's concentration in the healthcare sector, which could expose it to industry-specific volatility.

Positive Factors

Strong Recent Performance

The ETF has shown solid returns over the past three months, indicating positive momentum.

Focused Sector Exposure

With nearly all assets in the health care sector, the fund benefits from targeting a historically resilient industry.

Reasonable Expense Ratio

The ETF's expense ratio is competitive for a specialized fund, helping investors retain more of their returns.

Negative Factors

Over-Concentration in Health Care

The ETF's heavy reliance on the health care sector limits diversification and increases vulnerability to sector-specific risks.

Weakness in Top Holdings

Several of the largest positions, such as Avantor and Molina Healthcare, have underperformed year-to-date, dragging on overall performance.

Minimal Geographic Diversification

With nearly all assets invested in U.S. companies, the fund lacks exposure to international markets, reducing global risk mitigation.

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

AUM921.03M

RegionNorth America

Expense Ratio0.62%

Beta0.64

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.68%

Asset ClassEquity

Index TrackedStrataQuant Health Care Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume18,884

30 Day Avg. Volume18,288

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

129.22

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering78

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FXH Summary

The First Trust Health Care AlphaDEX Fund (FXH) is an ETF that focuses on the health care sector, including companies involved in pharmaceuticals, biotechnology, medical equipment, and health care services. It uses a unique strategy to select stocks based on growth potential, aiming to outperform traditional health care indices. Some well-known companies in the fund include Biogen and Regeneron. Investors might consider FXH for exposure to the growing health care industry, driven by innovation and increasing global demand for medical solutions. However, new investors should be aware that the fund is heavily focused on health care, meaning its performance can be impacted by changes or challenges specific to this sector.

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

The FXH fund is heavily concentrated in the health care sector, showcasing a mix of pharmaceutical innovators and biotech trailblazers. Regeneron and Incyte are rising stars, benefiting from robust financial health and strategic R&D investments, while Ionis Pharmaceuticals adds momentum with strong product launches despite lingering financial risks. Illumina, however, is lagging slightly, weighed down by cash flow challenges. With its U.S.-focused portfolio, FXH captures the dynamic pulse of health care innovation, though its reliance on a few key names could amplify both growth potential and volatility.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
INSM	Insmed	2.99%	$28.56M	$44.58B	173.43%	56 Neutral
REGN	Regeneron	2.88%	$27.56M	$82.75B	1.12%	78 Outperform
BIIB	Biogen	2.67%	$25.56M	$26.69B	12.13%	74 Outperform
GMED	Globus Medical	2.62%	$25.07M	$12.27B	7.87%	82 Outperform
INCY	Incyte	2.56%	$24.49M	$20.72B	42.03%	81 Outperform
IONS	Ionis Pharmaceuticals	2.55%	$24.35M	$13.11B	122.00%	57 Neutral
UHS	Universal Health	2.45%	$23.46M	$15.51B	18.27%	78 Outperform
MEDP	Medpace Holdings	2.45%	$23.42M	$17.23B	82.52%	79 Outperform
UTHR	United Therapeutics	2.38%	$22.80M	$20.92B	29.44%	79 Outperform
CNC	Centene	2.29%	$21.88M	$19.49B	-33.90%	58 Neutral

FXH Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

111.39

Positive

100DMA

107.54

Positive

200DMA

104.67

Positive

Market Momentum

MACD

0.98

Negative

RSI

71.49

Negative

STOCH

95.00

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 112.12, equal to the 50-day MA of 111.39, and equal to the 200-day MA of 104.67, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 95.00 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	―	―	$921.03M	0.62%	69 Neutral
IHF	―	―	$731.10M	0.38%	69 Neutral
RSPH	―	―	$725.16M	0.40%	71 Outperform
PINK	―	―	$306.03M	0.51%	65 Neutral
PSCH	―	―	$138.32M	0.29%	66 Neutral
PTH	―	―	$117.54M	0.60%	60 Neutral

Performance Comparison

FXH

First Trust Health Care AlphaDEX Fund

118.18

7.64

6.91%

IHF

iShares U.S. Healthcare Providers 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: ―

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