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FXL - ETF AI Analysis

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FXL

First Trust Technology AlphaDEX Fund (FXL)

Rating:71Outperform
Price Target:
FXL’s rating suggests it is a solid but not flawless technology-focused ETF, supported by several strong companies with healthy financial performance and growth in AI-related areas. Standout holdings like Zoom, Cognizant, Western Digital, and Sanmina boost the fund’s quality through strong earnings, positive technical trends, and strategic initiatives, while names like Dell and Amdocs introduce some caution due to leverage, cash flow, and momentum concerns. The main risk is the fund’s concentration in technology, which can make it more sensitive to sector-specific volatility and valuation swings.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating that its overall strategy has recently worked well for investors.
Exposure to Leading Tech Names
Holdings like AMD, Dell, Zoom, and Adobe give investors access to well-known technology companies that have shown strong or improving performance.
Large Asset Base
The fund manages a sizable pool of assets, which can support trading liquidity and help keep the ETF operating efficiently.
Negative Factors
High Technology Concentration
With most of the portfolio in technology stocks, the ETF is heavily exposed to swings in the tech sector and less protected if that area weakens.
Several Weak Top Holdings
A number of the largest positions, such as Cognizant, Epam Systems, PTC, Amdocs, Leidos, and Adobe, have shown weak recent performance, which can drag on the fund.
Relatively High Expense Ratio
The ETF charges a higher fee than many broad market index funds, which means more of the returns go toward costs instead of staying with investors.

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

FXL Summary

FXL is an exchange-traded fund (ETF) that focuses on U.S. technology stocks by tracking the StrataQuant Technology Index. It mainly holds companies in the information technology sector, from well-known names like Adobe and Advanced Micro Devices (AMD) to smaller, fast-growing tech firms. Someone might invest in FXL to seek growth from the long-term expansion of the tech industry and to get diversified exposure to many different tech companies in a single investment. However, because it is heavily concentrated in technology, its price can rise and fall sharply when tech stocks are in or out of favor.
How much will it cost me?The expense ratio for FXL is 0.62%, meaning you’ll pay $6.20 per year for every $1,000 invested. This is higher than average because FXL is actively managed, using a unique strategy to select and weight stocks based on growth factors, which requires more research and management compared to passively managed ETFs.
What would affect this ETF?FXL's focus on the U.S. technology sector positions it to benefit from continued innovation in areas like artificial intelligence, cloud computing, and digital transformation, which could drive growth for its top holdings like Alphabet and Broadcom. However, rising interest rates or regulatory changes targeting tech companies may negatively impact the sector's profitability and valuations, creating potential headwinds for the ETF's performance.

FXL Top 10 Holdings

FXL is a tech-heavy, U.S.-focused fund where a few key names are setting the tone. Dell and AMD have been the main engines lately, riding strong momentum in AI and data-center demand and giving the ETF some welcome lift. Zoom has been more steady than spectacular, helping but not really moving the needle. On the other side, consulting and software names like Cognizant, EPAM, and Adobe have been losing steam, weighing on results despite solid fundamentals. Overall, the fund is clearly concentrated in technology, with performance hinging on a handful of rising AI-linked leaders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Cognizant2.52%$61.45M$23.84B-23.88%
79
Outperform
Epam Systems2.35%$57.28M$5.25B-34.81%
70
Neutral
PTC2.03%$49.58M$14.73B-34.59%
73
Outperform
Amdocs1.96%$47.81M$5.90B-34.02%
69
Neutral
Leidos Holdings1.93%$47.23M$14.89B-28.98%
77
Outperform
Zoom Video Communications1.86%$45.53M$26.82B24.47%
81
Outperform
Adobe1.79%$43.71M$99.05B-27.63%
80
Outperform
RingCentral1.54%$37.69M$4.75B117.86%
63
Neutral
Dell Technologies1.49%$36.43M$254.19B176.80%
65
Neutral
KBR1.45%$35.40M$4.74B-21.07%
73
Outperform

FXL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
206.10
Negative
100DMA
190.48
Positive
200DMA
179.90
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 200.77, equal to the 50-day MA of 206.10, and equal to the 200-day MA of 179.90, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXL.

FXL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.49B0.60%
71
Outperform
$5.39B0.40%
71
Outperform
$4.51B0.55%
72
Outperform
$2.74B0.35%
63
Neutral
$2.72B0.60%
67
Neutral
$2.07B0.35%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXL
First Trust Technology AlphaDEX Fund
197.32
37.09
23.15%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
XSD
SPDR S&P Semiconductor ETF
SKYY
First Trust Cloud Computing ETF
XNTK
Spdr Nyse Technology 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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