FXL - ETF AI Analysis

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First Trust Technology AlphaDEX Fund (FXL)

Rating:71Outperform

Price Target:

$188.00

The ETF FXL's overall rating reflects a solid performance driven by strong holdings in technology-focused companies. Lam Research and KLA stand out as key contributors due to their robust financial performance, effective cost management, and strategic advancements in AI and semiconductor technologies. However, weaker holdings like Dell and Pure Storage, with valuation concerns and financial risks, may have slightly held back the fund's rating. A potential risk factor is the ETF's concentration in the technology sector, which could expose it to volatility during industry downturns.

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)

AUM1.47B

RegionNorth America

Expense Ratio0.62%

Beta1.41

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. Volume11,262

30 Day Avg. Volume14,950

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

197.56

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering101

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 U.S. technology sector, with standout performers like Lam Research and KLA driving gains thanks to their strong positions in semiconductors and AI infrastructure. Pure Storage has also shown impressive momentum, though valuation concerns could limit further upside. On the flip side, Pinterest is lagging behind, weighed down by declining ad pricing despite international growth. With a clear focus on innovation and tech-heavy names, this ETF offers a dynamic ride for investors betting on the future of digital transformation.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VRT	Vertiv Holdings	2.13%	$31.70M	$72.86B	67.42%	78 Outperform
DELL	Dell Technologies	1.96%	$29.18M	$110.86B	35.56%	65 Neutral
LRCX	Lam Research	1.96%	$29.16M	$195.46B	98.72%	77 Outperform
PSTG	Pure Storage	1.92%	$28.54M	$31.33B	73.12%	76 Outperform
AMKR	Amkor	1.91%	$28.41M	$7.95B	14.94%	74 Outperform
AVGO	Broadcom	1.90%	$28.37M	$1.76T	108.08%	79 Outperform
KLAC	KLA	1.88%	$28.06M	$158.82B	73.22%	86 Outperform
APH	Amphenol	1.87%	$27.84M	$168.05B	99.32%	77 Outperform
GOOGL	Alphabet Class A	1.85%	$27.61M	$3.24T	57.63%	82 Outperform
NVDA	Nvidia	1.81%	$27.04M	$4.89T	42.32%	85 Outperform

FXL Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

167.01

Positive

100DMA

162.15

Positive

200DMA

152.74

Positive

Market Momentum

MACD

1.94

Negative

RSI

60.87

Neutral

STOCH

91.93

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 170.58, equal to the 50-day MA of 167.01, and equal to the 200-day MA of 152.74, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.93 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

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXL	―	―	$1.47B	0.62%	71 Outperform
RSPT	―	―	$4.14B	0.40%	73 Outperform
SKYY	―	―	$3.32B	0.60%	68 Neutral
QTEC	―	―	$2.99B	0.55%	73 Outperform
XSD	―	―	$1.78B	0.35%	67 Neutral
XNTK	―	―	$1.45B	0.35%	74 Outperform

Performance Comparison

FXL

First Trust Technology AlphaDEX Fund

175.25

33.02

23.22%

RSPT

Invesco S&P 500 Equal Weight Technology ETF

―

SKYY

First Trust Cloud Computing ETF

―

QTEC

First Trust NASDAQ-100 Technology Sector Index Fund

―

XSD

SPDR S&P Semiconductor 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.

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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