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FXU - ETF AI Analysis
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First Trust Utilities AlphaDEX Fund (FXU)
Rating:66Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has delivered steady gains over the past month and quarter, indicating positive momentum.
Focused Sector Exposure
The fund’s heavy allocation to utilities provides stability, as this sector is known for consistent demand and lower volatility.
Healthy Asset Base
With over $1.7 billion in assets under management, the ETF has strong investor interest and liquidity.
Negative Factors
High Geographic Concentration
The fund is almost entirely focused on U.S. companies, limiting diversification across global markets.
Underperforming Holdings
Some top holdings, like PG&E and Edison International, have shown weak performance year-to-date, which could drag on overall returns.
Relatively High Expense Ratio
The ETF’s expense ratio is higher than many passive funds, which could reduce net returns for long-term investors.
FXU vs. SPDR S&P 500 ETF (SPY)
AUM1.80B
RegionNorth America
Expense Ratio0.64%
Beta0.33
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield2.28%
Asset ClassEquity
Index TrackedStrataQuant Utilities Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume682,342
30 Day Avg. Volume434,425
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
51.62Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering41
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXU Summary
The First Trust Utilities AlphaDEX Fund (FXU) is an exchange-traded fund that focuses on the Utilities sector, which includes companies providing essential services like electricity, water, and natural gas. It follows the StrataQuant Utilities Index and uses a unique strategy to select and weight stocks based on growth and value factors. Some well-known companies in the fund include PG&E and Exelon. Investors might consider FXU for its potential to provide steady income and stability, as utility companies are essential to daily life. However, new investors should be aware that the fund is heavily focused on the Utilities sector, meaning its performance could be impacted by changes specific to that industry.
How much will it cost me?The expense ratio for FXU is 0.64%, which means you’ll pay $6.40 per year for every $1,000 invested. This is higher than the average for ETFs because FXU is actively managed, using a specialized strategy to select and weight stocks in the Utilities sector. Active management typically involves higher costs compared to passively managed funds.
What would affect this ETF?The FXU ETF, focused on the Utilities sector, could benefit from stable demand for essential services like electricity and water, especially during economic downturns when utilities are seen as defensive investments. However, rising interest rates may negatively impact utility companies due to their reliance on debt for infrastructure projects, and regulatory changes in the U.S. could also pose challenges to profitability. Additionally, the fund's heavy exposure to North America means its performance is closely tied to U.S. economic and policy conditions.
FXU Top 10 Holdings
The FXU fund is firmly rooted in the Utilities sector, with nearly all its holdings concentrated in essential services like electricity and natural gas. NRG Energy is a standout performer, rising on strong earnings and growth initiatives, while Clearway Energy also shows promise with solid technical momentum and a robust dividend yield. On the flip side, Vistra Energy is lagging, weighed down by declining profitability and technical challenges. PG&E and Edison International are steady but face risks tied to regulatory and cash flow issues. Overall, the fund’s focus on U.S.-based utilities provides defensive stability but leaves little room for diversification.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| UGI | 4.81% | $87.59M | $8.23B | 37.23% | 70 Outperform | |
| Mdu Resources Group | 4.59% | $83.59M | $4.00B | 7.12% | 62 Neutral | |
| Edison International | 4.53% | $82.41M | $23.11B | -25.17% | 77 Outperform | |
| PG&E | 4.37% | $79.52M | $34.86B | -21.56% | 69 Neutral | |
| NRG Energy | 4.13% | $75.15M | $30.30B | 69.96% | 69 Neutral | |
| Consolidated Edison | 4.12% | $75.06M | $35.71B | 10.46% | 62 Neutral | |
| Exelon | 4.03% | $73.29M | $43.91B | 15.83% | 67 Neutral | |
| Clearway Energy | 3.99% | $72.62M | $6.74B | 25.23% | 70 Neutral | |
| Vistra Energy | 3.44% | $62.66M | $54.78B | 12.77% | 65 Neutral | |
| American Electric Power | 3.42% | $62.16M | $61.50B | 24.66% | 69 Neutral |
FXU Technical Analysis
Neutral
―
Price Trends
45.83
Negative
45.06
Negative
43.07
Positive
Market Momentum
-0.28
Negative
46.73
Neutral
65.97
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXU, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 45.19, equal to the 50-day MA of 45.83, and equal to the 200-day MA of 43.07, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 65.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FXU.
FXU Peer Comparison
Comparison Results
Performance Comparison
FXU
First Trust Utilities AlphaDEX Fund
45.06
7.79
20.90%
VPU
Vanguard Utilities ETF
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―
―
XLRE
Real Estate Select Sector SPDR Fund
―
―
―
FUTY
Fidelity MSCI Utilities Index ETF
―
―
―
IDU
iShares U.S. Utilities ETF
―
―
―
UTES
Virtus Reaves Utilities 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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