FXO - ETF AI Analysis
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First Trust Financials AlphaDEX Fund (FXO)
Rating:73Outperform
Price Target:―
Positive Factors
Balanced Top Holdings
The fund’s largest positions are each relatively small slices of the portfolio, which helps reduce the impact of any single stock.
Mix of Strong and Steady Leaders
Several top holdings have shown strong or steady year-to-date performance, helping support the fund despite some weaker names.
Meaningful Asset Base
The ETF manages over a billion dollars in assets, suggesting it has attracted and maintained a solid level of investor interest.
Negative Factors
Sector Concentration in Financials
With the vast majority of assets in financial stocks, the fund is heavily exposed to downturns in the financial sector.
Limited Geographic Diversification
Almost all holdings are U.S.-based, so the fund offers little protection if the U.S. market struggles compared with other regions.
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost options.
FXO vs. SPDR S&P 500 ETF (SPY)
AUM1.04B
RegionNorth America
Expense Ratio0.60%
Beta0.90
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield2.11%
Asset ClassEquity
Index TrackedStrataQuant Financials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume60,787
30 Day Avg. Volume83,426
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
67.05Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering106
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXO Summary
FXO is an exchange-traded fund (ETF) that follows the StrataQuant Financials Index, focusing on U.S. financial companies like banks, insurance firms, and investment managers. It holds well-known names such as T. Rowe Price and FactSet Research. The fund uses a rules-based approach to pick financial stocks that show attractive growth or value traits, so someone might invest in FXO to get diversified exposure to the U.S. financial sector with the potential for long-term growth. A key risk is that it is heavily tied to financial stocks, so it can rise or fall sharply when the financial sector is under pressure.
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 U.S. financials story, with asset managers and insurers setting the tone. Names like T. Rowe Price and SEI Investments have been steadily rising, giving the fund a helpful tailwind, while Hanover Insurance and Allstate add extra lift with stronger recent momentum. On the flip side, mortgage REITs AGNC Investment and Annaly Capital are clearly dragging, with weaker trends that dull some of the shine. Overall, the ETF is concentrated in traditional financials, so its fortunes largely ride on the health of U.S. capital markets and credit conditions.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Affiliated Managers | 1.87% | $19.61M | $9.09B | 94.84% | 74 Outperform | |
| T Rowe Price | 1.77% | $18.61M | $23.20B | 19.72% | 75 Outperform | |
| Jefferies | 1.74% | $18.29M | $12.20B | 18.12% | 63 Neutral | |
| Hanover Insurance | 1.66% | $17.45M | $6.86B | 16.52% | 77 Outperform | |
| SEI Investments Company | 1.66% | $17.43M | $10.60B | 7.72% | 79 Outperform | |
| Bank OZK | 1.65% | $17.37M | $5.86B | 16.61% | 70 Outperform | |
| Factset Research | 1.62% | $17.01M | $8.62B | -42.57% | 78 Outperform | |
| First American Financial | 1.59% | $16.69M | $6.61B | 11.56% | 74 Outperform | |
| Cincinnati Financial | 1.56% | $16.44M | $26.03B | 15.48% | 76 Outperform | |
| Allstate | 1.56% | $16.36M | $56.52B | 11.42% | 74 Outperform |
FXO Technical Analysis
Positive
―
Price Trends
59.14
Positive
58.76
Positive
58.60
Positive
Market Momentum
0.41
Negative
66.57
Neutral
92.30
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 59.23, equal to the 50-day MA of 59.14, and equal to the 200-day MA of 58.60, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 66.57 is Neutral, neither overbought nor oversold. The STOCH value of 92.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXO.
FXO Peer Comparison
Comparison Results
Performance Comparison
FXO
First Trust Financials AlphaDEX Fund
61.32
8.66
16.45%
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
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―
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IYG
iShares US Financial Services ETF
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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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