FXL - ETF AI Analysis

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First Trust Technology AlphaDEX Fund (FXL)

Rating:71Outperform

Price Target:―

FXL’s rating suggests it is a solid but not flawless technology-focused ETF, driven largely by strong holdings like Micron, Lam Research, and Vertiv, which benefit from robust financial performance and strategic exposure to fast-growing areas such as AI and advanced data center technologies. Zoom and Marvell also add support with positive earnings and generally favorable technical trends, though some holdings like MACOM and Dell face valuation, leverage, and profitability challenges that slightly weigh on the fund’s overall quality. The main risk factor is its concentration in the technology sector, which can make the ETF more sensitive to swings in tech valuations and industry-specific headwinds.

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)

AUM1.52B

RegionNorth America

Expense Ratio0.60%

Beta1.40

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. Volume15,861

30 Day Avg. Volume16,802

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

224.78

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering104

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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
MU	Micron	3.13%	$48.32M	$825.49B	703.65%	79 Outperform
AMD	Advanced Micro Devices	2.32%	$35.75M	$729.82B	306.10%	73 Outperform
MRVL	Marvell	2.29%	$35.36M	$163.55B	208.31%	76 Outperform
MTSI	MACOM Technology Solutions Holdings	2.25%	$34.78M	$28.67B	213.02%	64 Neutral
VRT	Vertiv Holdings	2.02%	$31.20M	$121.25B	210.36%	77 Outperform
MPWR	Monolithic Power	2.02%	$31.15M	$76.31B	132.26%	75 Outperform
DELL	Dell Technologies	2.01%	$31.00M	$158.49B	125.82%	65 Neutral
LRCX	Lam Research	1.87%	$28.83M	$365.28B	266.08%	77 Outperform
JBL	Jabil	1.82%	$28.12M	$36.41B	115.88%	73 Outperform
ZM	Zoom Video Communications	1.77%	$27.27M	$29.30B	17.89%	81 Outperform

FXL Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

177.49

Positive

100DMA

173.22

Positive

200DMA

170.09

Positive

Market Momentum

MACD

5.16

Positive

RSI

71.63

Negative

STOCH

79.43

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 191.61, equal to the 50-day MA of 177.49, and equal to the 200-day MA of 170.09, indicating a bullish trend. The MACD of 5.16 indicates Positive momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 79.43 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
FXL	―	―	$1.52B	0.60%	71 Outperform
RSPT	―	―	$5.01B	0.40%	71 Outperform
QTEC	―	―	$3.33B	0.55%	73 Outperform
XSD	―	―	$2.88B	0.35%	66 Neutral
SKYY	―	―	$2.66B	0.60%	68 Neutral
XNTK	―	―	$1.97B	0.35%	74 Outperform

Performance Comparison

FXL

First Trust Technology AlphaDEX Fund

202.19

53.22

35.73%

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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