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FXL - ETF AI Analysis
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First Trust Technology AlphaDEX Fund (FXL)
Rating:72Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several top positions, such as Lam Research and KLA, have delivered strong year-to-date performance, supporting the fund’s overall returns.
Technology Sector Focus
The ETF’s heavy exposure to technology, a historically high-growth sector, positions it well for long-term potential.
Healthy Year-to-Date Performance
The fund has shown solid year-to-date gains, indicating resilience in its portfolio despite short-term fluctuations.
Negative Factors
High Sector Concentration
With over 86% of assets in technology, the fund is highly exposed to sector-specific risks like regulatory changes or market downturns.
Limited Geographic Diversification
Nearly all holdings are U.S.-based, leaving the fund vulnerable to domestic economic challenges and missing out on global growth opportunities.
Above-Average Expense Ratio
The ETF’s expense ratio is higher than many passive funds, which could eat into investor returns over time.
FXL vs. SPDR S&P 500 ETF (SPY)
AUM1.46B
RegionNorth America
Expense Ratio0.62%
Beta1.44
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield0.02%
Asset ClassEquity
Index TrackedStrataQuant Technology Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume12,692
30 Day Avg. Volume13,935
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
208.27Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering103
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXL Summary
The First Trust Technology AlphaDEX Fund (FXL) is an ETF that focuses on the Information Technology sector, using a strategy to select companies based on growth factors like price increases and sales momentum. It includes a mix of well-known tech companies, such as Alphabet (Google) and Broadcom, as well as smaller, innovative firms. Investors might consider FXL for its potential to benefit from the rapid growth and innovation in the tech industry, making it a good option for those seeking exposure to cutting-edge technologies. However, since it is heavily focused on tech, its performance can be highly sensitive to changes in the technology market.
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
The First Trust Technology AlphaDEX Fund (FXL) is heavily concentrated in the tech sector, with standout performances from Lam Research and Palantir Technologies driving much of the fund’s momentum. Lam Research’s focus on AI and advanced technologies has positioned it as a rising star, while Palantir’s robust U.S. growth and AI solutions are adding fuel to the fund’s performance. However, Globant SA is lagging, weighed down by macroeconomic challenges and profit margin pressures, creating a drag on returns. With its U.S.-centric exposure and tech-heavy lineup, FXL is a bet on innovation but not without its bumps.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| MACOM Technology Solutions Holdings | 2.02% | $29.13M | $16.11B | 52.61% | 64 Neutral | |
| Lam Research | 1.96% | $28.30M | $262.25B | 174.18% | 77 Outperform | |
| KLA | 1.90% | $27.40M | $188.48B | 100.28% | 77 Outperform | |
| Strategy | 1.90% | $27.39M | $51.53B | -50.27% | 55 Neutral | |
| Applied Materials | 1.89% | $27.26M | $239.38B | 69.24% | 77 Outperform | |
| Amphenol | 1.74% | $25.20M | $179.63B | 106.84% | 78 Outperform | |
| Science Applications | 1.72% | $24.91M | $4.88B | -6.90% | 71 Outperform | |
| Alphabet Class A | 1.72% | $24.90M | $4.06T | 71.74% | 85 Outperform | |
| Vertiv Holdings | 1.69% | $24.47M | $65.33B | 29.44% | 77 Outperform | |
| Arrow Electronics | 1.69% | $24.43M | $5.98B | 1.55% | 64 Neutral |
FXL Technical Analysis
Positive
―
Price Trends
169.33
Positive
168.54
Positive
158.29
Positive
Market Momentum
1.39
Negative
56.02
Neutral
86.85
Negative
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 171.54, equal to the 50-day MA of 169.33, and equal to the 200-day MA of 158.29, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 86.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXL.
FXL Peer Comparison
Comparison Results
Performance Comparison
FXL
First Trust Technology AlphaDEX Fund
173.98
21.67
14.23%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
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―
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QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
―
―
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SKYY
First Trust Cloud Computing ETF
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―
―
XSD
SPDR S&P Semiconductor ETF
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―
―
XNTK
Spdr Nyse Technology Etf
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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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