FXH - ETF AI Analysis

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First Trust Health Care AlphaDEX Fund (FXH)

Rating:70Outperform

Price Target:―

The ETF FXH, focused on the healthcare sector, has a solid overall rating, driven by strong contributions from holdings like Globus Medical (GMED) and United Therapeutics (UTHR). Both companies exhibit robust financial performance, strategic growth initiatives, and positive earnings momentum, which bolster the fund's quality. However, weaker holdings such as Insmed (INSM), which faces profitability and cash flow challenges, slightly weigh on the ETF's rating. Investors should also be aware of potential risks from sector concentration in healthcare, which may amplify exposure to regulatory and market-specific uncertainties.

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)

AUM976.63M

RegionNorth America

Expense Ratio0.62%

Beta0.65

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.72%

Asset ClassEquity

Index TrackedStrataQuant Health Care Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume28,107

30 Day Avg. Volume19,036

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

134.47

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering77

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 rising innovators and steady performers. Ionis Pharmaceuticals and Insmed are leading the charge, with Ionis benefiting from strong momentum and product launches, while Insmed’s growth is tempered by profitability challenges. United Therapeutics and Incyte are steady contributors, bolstered by robust financials and strategic initiatives. However, BioMarin Pharmaceutical is lagging, weighed down by valuation concerns despite strategic acquisitions. With its U.S.-focused portfolio, FXH captures the dynamic pulse of health care innovation while navigating sector-specific risks.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
OGN	Organon	2.42%	$23.54M	$2.09B	-48.71%	53 Neutral
SOLV	Solventum Corporation	2.34%	$22.79M	$14.88B	27.88%	73 Outperform
INCY	Incyte	2.33%	$22.68M	$20.79B	50.16%	81 Outperform
BIIB	Biogen	2.29%	$22.35M	$27.29B	24.98%	74 Outperform
MEDP	Medpace Holdings	2.28%	$22.21M	$16.90B	71.01%	79 Outperform
MOH	Molina Healthcare	2.25%	$21.93M	$9.43B	-35.86%	71 Outperform
PFE	Pfizer	2.20%	$21.45M	$144.87B	-5.35%	74 Outperform
NTRA	Natera	2.20%	$21.44M	$33.14B	36.89%	73 Outperform
IONS	Ionis Pharmaceuticals	2.18%	$21.28M	$13.21B	143.69%	61 Neutral
HCA	HCA Healthcare	2.18%	$21.20M	$109.31B	58.19%	70 Neutral

FXH Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

114.08

Positive

100DMA

111.69

Positive

200DMA

106.01

Positive

Market Momentum

MACD

0.99

Negative

RSI

62.01

Neutral

STOCH

84.03

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 115.46, equal to the 50-day MA of 114.08, and equal to the 200-day MA of 106.01, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 84.03 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	―	―	$976.63M	0.62%	―
IHE	―	―	$952.59M	0.38%	―
RSPH	―	―	$779.76M	0.40%	―
PINK	―	―	$352.16M	0.51%	―
PSCH	―	―	$151.75M	0.29%	―
PTH	―	―	$127.18M	0.60%	―

Performance Comparison

FXH

First Trust Health Care AlphaDEX Fund

118.29

11.74

11.02%

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: ―

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