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FXO - ETF AI Analysis
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First Trust Financials AlphaDEX Fund (FXO)
Rating:70Outperform
Price Target:
$64.00
Positive Factors
Strong Top Holdings
Several top holdings, such as SoFi and Interactive Brokers, have delivered strong year-to-date performance, supporting the fund’s overall returns.
Focused Sector Exposure
The ETF’s heavy allocation to financials provides targeted exposure to a sector with growth potential and steady demand.
Healthy Asset Base
The fund has over $2 billion in assets under management, indicating investor confidence and stability.
Negative Factors
High Sector Concentration
With nearly all assets in financials, the ETF is vulnerable to sector-specific risks like regulatory changes or economic downturns.
Mixed Holding Performance
Some holdings, such as T Rowe Price and Kemper, have underperformed year-to-date, dragging on overall returns.
Above-Average Expense Ratio
The ETF’s expense ratio is higher than many passive funds, which could reduce net returns for long-term investors.
FXO vs. SPDR S&P 500 ETF (SPY)
AUM2.10B
RegionNorth America
Expense Ratio0.62%
Beta0.91
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield1.88%
Asset ClassEquity
Index TrackedStrataQuant Financials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume353,161
30 Day Avg. Volume135,665
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
67.23Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering106
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXO Summary
The First Trust Financials AlphaDEX Fund (FXO) is an ETF that focuses on companies in the financial sector, such as banks, insurance firms, and investment services. It uses a unique strategy to pick stocks with strong growth and value potential, aiming to outperform traditional financial sector funds. Some well-known companies in this ETF include Citigroup and Bank of New York Mellon. Investors might consider FXO for targeted exposure to the financial sector and the potential for growth through its specialized stock selection. However, it’s important to know that FXO is heavily tied to the financial industry, so its performance can be impacted by changes in that sector or broader economic conditions.
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
The FXO ETF is heavily concentrated in the financial sector, with a diverse mix of banks, insurance firms, and investment services driving its performance. Interactive Brokers and Nu Holdings are rising stars, benefiting from strong client growth and strategic expansions, while Kemper is dragging the fund with weak profitability and bearish momentum. Citigroup and Bank of New York Mellon offer steady contributions, balancing challenges with innovation and capital returns. Overall, the fund’s U.S.-focused portfolio leans on financial heavyweights, but mixed results from key holdings highlight the sector’s uneven recovery.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Brighthouse Financial | 2.16% | $44.44M | $3.75B | 31.27% | 74 Outperform | |
| Assured Guaranty | 1.83% | $37.69M | $4.00B | -2.83% | 73 Outperform | |
| Renaissancere Holdings | 1.83% | $37.54M | $12.12B | 0.46% | 78 Outperform | |
| Arch Capital Group | 1.77% | $36.28M | $33.29B | -4.08% | 79 Outperform | |
| SoFi | 1.73% | $35.62M | $32.61B | 81.97% | 66 Neutral | |
| Bank of New York Mellon | 1.72% | $35.38M | $74.46B | 38.51% | 78 Outperform | |
| Unum Group | 1.72% | $35.37M | $12.70B | 6.44% | 72 Outperform | |
| American International Group | 1.71% | $35.19M | $41.26B | 2.35% | 59 Neutral | |
| MGIC Investment | 1.71% | $35.17M | $6.18B | 13.23% | 78 Outperform | |
| Goldman Sachs Group | 1.70% | $34.96M | $232.61B | 33.53% | 71 Outperform |
FXO Technical Analysis
Negative
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Price Trends
58.27
Negative
57.84
Negative
55.20
Positive
Market Momentum
-0.11
Positive
42.78
Neutral
24.00
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 57.59, equal to the 50-day MA of 58.27, and equal to the 200-day MA of 55.20, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.00 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
56.82
1.42
2.56%
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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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.
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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