FXO - ETF AI Analysis
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First Trust Financials AlphaDEX Fund (FXO)
Rating:72Outperform
Price Target:―
Positive Factors
Solid Recent Performance
The ETF has shown strong gains over the past three and twelve months, indicating positive momentum in its strategy.
Strong Financial Stock Exposure
Several key financial holdings, such as Travelers, Interactive Brokers, and Allstate, have delivered strong performance, helping support the fund’s returns.
Focused U.S. Market Exposure
With almost all assets in U.S. companies, investors get clear, targeted exposure to the U.S. financial sector without added foreign currency risk.
Negative Factors
High Sector Concentration
The fund is heavily concentrated in financial stocks, which means it can be more sensitive to downturns in the financial sector.
Mixed Top Holding Performance
Some of the largest positions, including Lincoln National, AIG, FactSet, and Assured Guaranty, have shown weak performance, which can drag on overall returns.
Above-Average Expense Ratio
The ETF’s fee is relatively high compared with many broad market index funds, which slightly reduces the net return investors receive.
FXO vs. SPDR S&P 500 ETF (SPY)
AUM1.11B
RegionNorth America
Expense Ratio0.60%
Beta0.87
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield1.99%
Asset ClassEquity
Index TrackedStrataQuant Financials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume44,127
30 Day Avg. Volume52,971
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
72.16Price 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 that follows the StrataQuant Financials Index, focusing on U.S. financial companies like banks, insurance firms, and investment services. Its holdings include well-known names such as Allstate and American International Group (AIG). The fund uses a rules-based approach to pick stocks it believes have strong growth and value potential, giving investors a way to bet on the financial sector while spreading risk across many companies. A key risk is that it is heavily tied to financial stocks, so its value can rise or fall sharply with changes in interest rates, the economy, and the overall market.
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 essentially a bet on U.S. financials, with insurance names steering the ship. Travelers and Allstate have been rising steadily, giving the fund a solid backbone, while First American Financial adds more momentum with improving fundamentals. On the flip side, FactSet Research and Lincoln National have been more mixed, with recent weakness acting like a small anchor on performance. Overall, the ETF is tightly focused on financials, especially insurers, so investors are riding the fortunes of this one sector rather than a broad market mix.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Marketaxess Holdings | 2.27% | $25.33M | $5.70B | -14.10% | 68 Neutral | |
| Factset Research | 2.07% | $23.15M | $10.67B | -21.41% | 78 Outperform | |
| Lincoln National | 1.89% | $21.08M | $8.04B | 0.50% | 71 Outperform | |
| Travelers Companies | 1.75% | $19.60M | $76.02B | 31.59% | 78 Outperform | |
| MGIC Investment | 1.73% | $19.33M | $6.30B | 9.77% | 78 Outperform | |
| Allstate | 1.70% | $18.99M | $64.36B | 23.51% | 74 Outperform | |
| Morningstar | 1.69% | $18.85M | $8.16B | -18.14% | 76 Outperform | |
| Central Bancompany | 1.68% | $18.75M | $7.69B | 70.45% | ― | |
| First American Financial | 1.67% | $18.63M | $7.35B | 7.97% | 74 Outperform | |
| Hartford Insurance | 1.64% | $18.37M | $37.14B | 1.55% | 78 Outperform |
FXO Technical Analysis
Neutral
―
Price Trends
64.38
Positive
61.55
Positive
60.07
Positive
Market Momentum
0.43
Positive
52.28
Neutral
8.98
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 66.26, equal to the 50-day MA of 64.38, and equal to the 200-day MA of 60.07, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FXO.
FXO Peer Comparison
Comparison Results
Performance Comparison
FXO
First Trust Financials AlphaDEX Fund
65.77
8.21
14.26%
KBWB
Invesco KBW Bank ETF
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―
―
IYF
iShares U.S. Financials ETF
―
―
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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.
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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