FXL - ETF AI Analysis

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First Trust Technology AlphaDEX Fund (FXL)

Rating:72Outperform

Price Target:―

FXL’s rating reflects a generally strong technology-focused portfolio, led by high-quality names like Micron, Cirrus Logic, Lam Research, Applied Materials, and KLA, which benefit from solid financial performance, positive earnings calls, and strong positioning in AI and advanced semiconductor technologies. These strengths are partly offset by weaker contributors such as Arrow Electronics, MACOM Technology Solutions, and Avnet, where mixed financials, profitability and cash flow challenges, and bearish technical trends weigh on the overall picture. The main risk factor is the fund’s concentration in the technology and semiconductor space, which can make it more sensitive to sector-specific issues like valuation pressures, export controls, and regional demand shifts.

Positive Factors

Strong Chip and Hardware Leaders at the Top

Many of the largest holdings, especially semiconductor and hardware companies, have shown strong gains this year, helping support the fund’s overall performance.

Broad Technology Industry Mix

Although it is tech-focused, the ETF spreads its investments across many different technology and related companies, reducing the impact if any single stock runs into trouble.

Solid Fund Size

With over a billion dollars in assets, the fund is large enough to offer stability and efficient trading for most everyday investors.

Negative Factors

High Sector Concentration in Technology

Because the vast majority of the portfolio is in technology stocks, the fund can be hit hard if the tech sector goes through a downturn.

Almost Entirely U.S.-Focused

With nearly all its holdings in U.S. companies, the ETF offers little geographic diversification and is heavily tied to the U.S. market.

Above-Average Expense Ratio

The fund charges a relatively high fee for an ETF, which can slowly reduce net returns compared with lower-cost alternatives.

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

AUM1.36B

RegionNorth America

Expense Ratio0.60%

Beta1.42

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.03%

Asset ClassEquity

Index TrackedStrataQuant Technology Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume12,043

30 Day Avg. Volume14,711

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

209.20

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering103

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 with strong growth traits, giving you exposure to both well-known names and smaller innovators. Well-known holdings include Advanced Micro Devices (AMD) and Micron. Someone might invest in FXL to seek long-term growth from the technology sector and to get a diversified basket of tech-related companies in a single investment. A key risk is that it is heavily concentrated in technology, so its price can swing sharply with changes 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 semiconductor wave, with names like Micron, Lam Research, Applied Materials, and KLA all rising and doing much of the heavy lifting for the fund. MACOM and Amkor add to this chip-heavy tilt, reinforcing FXL’s bet on AI and advanced manufacturing. AMD and Vertiv are more mixed lately, not exactly dragging the fund but not leading the charge either. With most holdings in U.S. tech and a clear concentration in chip and hardware plays, this ETF is firmly hitched to the semiconductor cycle.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VRT	Vertiv Holdings	2.52%	$34.61M	$93.05B	131.86%	77 Outperform
AMAT	Applied Materials	2.42%	$33.19M	$293.12B	110.12%	77 Outperform
MTSI	MACOM Technology Solutions Holdings	2.38%	$32.66M	$18.51B	95.60%	64 Neutral
ARW	Arrow Electronics	2.35%	$32.21M	$7.82B	37.16%	64 Neutral
LRCX	Lam Research	2.33%	$31.99M	$299.82B	166.67%	77 Outperform
KLAC	KLA	2.03%	$27.90M	$194.03B	89.02%	77 Outperform
CRUS	Cirrus Logic	1.99%	$27.31M	$7.45B	26.05%	79 Outperform
MU	Micron	1.97%	$26.98M	$473.78B	304.49%	79 Outperform
APH	Amphenol	1.88%	$25.81M	$181.59B	117.96%	78 Outperform
AVT	Avnet	1.85%	$25.34M	$5.35B	25.75%	67 Neutral

FXL Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

171.02

Negative

100DMA

169.82

Negative

200DMA

163.24

Positive

Market Momentum

MACD

-1.67

Positive

RSI

44.65

Neutral

STOCH

39.34

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXL, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 169.34, equal to the 50-day MA of 171.02, and equal to the 200-day MA of 163.24, indicating a neutral trend. The MACD of -1.67 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 39.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXL.

FXL Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXL	―	―	$1.36B	0.60%	―
RSPT	―	―	$4.10B	0.40%	―
QTEC	―	―	$2.92B	0.55%	―
SKYY	―	―	$2.47B	0.60%	―
XSD	―	―	$1.80B	0.35%	―
XNTK	―	―	$1.52B	0.35%	―

Performance Comparison

FXL

First Trust Technology AlphaDEX Fund

165.98

17.04

11.44%

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.

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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