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FXO - ETF AI Analysis
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First Trust Financials AlphaDEX Fund (FXO)
Rating:73Outperform
Price Target:―
Positive Factors
Broad Financials Exposure
The fund holds many different financial companies, which helps spread risk across the sector instead of relying on just a few names.
Generally Strong Top Holdings
Most of the top positions have shown positive year-to-date performance, which has supported the fund’s overall results.
Meaningful Fund Size
The ETF manages a sizable pool of assets, which can help with trading liquidity and reduce the chance of the fund being closed.
Negative Factors
High Sector Concentration
With almost all assets in financial and related real estate stocks, the fund is heavily exposed to downturns in the financial sector.
Limited Geographic Diversification
The ETF invests almost entirely in U.S. companies, offering little protection if the U.S. market or economy weakens.
Above-Average Expense Ratio
The fund charges a relatively high fee for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
FXO vs. SPDR S&P 500 ETF (SPY)
AUM2.10B
RegionNorth America
Expense Ratio0.60%
Beta0.91
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield1.78%
Asset ClassEquity
Index TrackedStrataQuant Financials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume105,320
30 Day Avg. Volume165,170
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
68.54Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering105
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXO Summary
FXO is an exchange-traded fund (ETF) that focuses on U.S. financial companies by tracking the StrataQuant Financials Index. It holds a mix of banks, insurance firms, and investment managers, including well-known names like T. Rowe Price and Bank of New York Mellon. Investors might consider FXO if they want targeted exposure to the financial sector and a way to diversify beyond just tech or broad market funds. However, this ETF can be risky because it is heavily tied to financial stocks, which can rise or fall sharply with interest rates and the overall economy.
How much will it cost me?The ETF FXO has an expense ratio of 0.62%, which means you’ll pay $6.20 per year for every $1,000 invested. This is higher than average because FXO is actively managed, using a proprietary strategy to select stocks with strong growth and value characteristics.
What would affect this ETF?FXO's performance could benefit from rising interest rates, as higher rates often improve profitability for banks and financial institutions, which dominate its holdings. However, economic downturns or stricter regulations in the financial sector could negatively impact the ETF, especially given its concentrated exposure to U.S.-based financial companies. Additionally, trends in fintech innovation and consumer demand for financial services may drive growth for top holdings like SoFi and Interactive Brokers.
FXO Top 10 Holdings
FXO is very much a financials story, with U.S. banks and asset managers in the driver’s seat. Invesco, Nu Holdings, and Bank of New York Mellon have been rising and act like the fund’s main engines, helped by solid earnings and upbeat momentum. SEI Investments and Bank OZK are steadier contributors, adding quiet support without much drama. On the flip side, T. Rowe Price and TPG have been more mixed, occasionally losing steam, while First American Financial has lagged, modestly dragging on this otherwise broadly diversified financials lineup.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| First American Financial | 1.84% | $38.61M | $6.85B | 4.78% | 74 Outperform | |
| Bank OZK | 1.80% | $37.94M | $5.61B | -3.83% | 70 Outperform | |
| Renaissancere Holdings | 1.80% | $37.82M | $13.11B | 29.48% | 78 Outperform | |
| Arch Capital Group | 1.72% | $36.19M | $35.68B | 11.38% | 79 Outperform | |
| Bank of New York Mellon | 1.70% | $35.79M | $81.03B | 33.63% | 75 Outperform | |
| Invesco | 1.69% | $35.62M | $11.80B | 43.20% | 77 Outperform | |
| Nu Holdings | 1.69% | $35.45M | $81.50B | 24.22% | 79 Outperform | |
| Allstate | 1.67% | $35.18M | $54.30B | 12.37% | 74 Outperform | |
| Brighthouse Financial | 1.65% | $34.77M | $3.65B | 1.64% | 74 Outperform | |
| Rithm Capital | 1.63% | $34.22M | $5.86B | -11.77% | 58 Neutral |
FXO Technical Analysis
Negative
―
Price Trends
60.96
Negative
59.35
Positive
57.51
Positive
Market Momentum
-0.04
Positive
46.83
Neutral
25.93
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 61.00, equal to the 50-day MA of 60.96, and equal to the 200-day MA of 57.51, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXO.
FXO Peer Comparison
Comparison Results
Performance Comparison
FXO
First Trust Financials AlphaDEX Fund
60.56
5.94
10.88%
KBWB
Invesco KBW Bank ETF
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―
―
IYF
iShares U.S. Financials ETF
―
―
―
FNCL
Fidelity MSCI Financials Index ETF
―
―
―
IYG
iShares US Financial Services ETF
―
―
―
KBE
SPDR S&P Bank 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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