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FXL - ETF AI Analysis

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FXL

First Trust Technology AlphaDEX Fund (FXL)

Rating:72Outperform
Price Target:
FXL’s rating suggests it is a solid but not flawless technology-focused ETF, supported by several strong chip and hardware names. Holdings like Micron, Lam Research, Cirrus Logic, Applied Materials, and KLA boost the fund’s quality through strong financial performance, positive earnings outlooks, and strategic positioning in AI and advanced technologies. However, weaker momentum and profitability concerns in names like Arrow Electronics, Avnet, and MACOM, along with risks from high valuations and regulatory or regional challenges, slightly hold back the overall rating and highlight the risk of concentration in cyclical tech and semiconductor sectors.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating solid recent momentum.
Leading Tech Holdings
Many of the top positions, especially in semiconductor and hardware companies, have delivered strong year-to-date performance that supports the fund’s returns.
Focused but Not Single-Stock Heavy
While the fund is concentrated in technology, its top holdings each make up only a small slice of assets, reducing the risk from any one company.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Sector Concentration Risk
With the vast majority of assets in technology stocks, the ETF is highly sensitive to downturns in the tech sector.
Limited Geographic Diversification
Almost all holdings are in U.S. companies, offering little protection if the U.S. market or economy weakens.

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

FXL Summary

FXL is an exchange-traded fund that focuses on U.S. technology stocks by tracking the StrataQuant Technology Index. It uses a rules-based approach to pick tech companies showing strong growth trends. The fund holds a wide mix of tech names, from well-known companies like Dell Technologies and Micron to smaller, specialized chip and hardware makers. Someone might invest in FXL to seek long-term growth and get diversified exposure across many different tech businesses in one investment. A key risk is that it is heavily concentrated in technology, so its price can swing sharply with ups and downs in the tech sector.
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 riding a powerful wave in U.S. tech, with the story largely driven by chip and AI infrastructure names. Marvell, Micron, and Monolithic Power are all rising, helped by enthusiasm around AI data centers and advanced memory, giving the fund a strong semiconductor heartbeat. Vertiv and Amkor are also climbing, adding extra lift as key picks-and-shovels players in the data and packaging space. MACOM’s more mixed profile and valuation worries act as a small speed bump, but overall the ETF is clearly concentrated in U.S. technology and AI-related hardware.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Marvell2.31%$34.23M$143.68B169.52%
76
Outperform
Micron2.24%$33.27M$560.17B567.72%
79
Outperform
Monolithic Power2.10%$31.11M$80.16B171.28%
75
Outperform
Dell Technologies1.90%$28.19M$141.12B128.61%
65
Neutral
KLA1.86%$27.65M$253.63B173.88%
77
Outperform
Vertiv Holdings1.86%$27.57M$124.24B274.26%
77
Outperform
Jabil1.85%$27.49M$36.04B132.83%
73
Outperform
Amkor1.85%$27.42M$19.35B332.61%
69
Neutral
MACOM Technology Solutions Holdings1.82%$26.96M$21.58B168.54%
64
Neutral
Advanced Micro Devices1.81%$26.85M$567.05B247.16%
73
Outperform

FXL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
168.58
Positive
100DMA
169.80
Positive
200DMA
167.52
Positive
Market Momentum
MACD
5.45
Negative
RSI
68.93
Neutral
STOCH
76.35
Neutral
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 177.43, equal to the 50-day MA of 168.58, and equal to the 200-day MA of 167.52, indicating a bullish trend. The MACD of 5.45 indicates Negative momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.35 is Neutral, 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
$1.49B0.60%
72
Outperform
$4.52B0.40%
71
Outperform
$2.97B0.55%
73
Outperform
$2.42B0.60%
67
Neutral
$2.31B0.35%
66
Neutral
$1.75B0.35%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXL
First Trust Technology AlphaDEX Fund
187.84
48.01
34.33%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
SKYY
First Trust Cloud Computing ETF
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.
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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