FXU - ETF AI Analysis

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First Trust Utilities AlphaDEX Fund (FXU)

Rating:68Neutral

Price Target:―

FXU, the First Trust Utilities AlphaDEX Fund, has an overall rating that suggests it is a reasonably solid utilities-focused ETF with some notable strengths but also a few concerns. Strong holdings like Edison International (EIX) and National Fuel Gas (NFG), which benefit from solid financial performance, positive earnings call insights, and strategic growth initiatives, help support the fund’s quality. However, weaker technical trends and cash flow challenges in several holdings such as Consolidated Edison (ED) and Evergy (EVRG) slightly weigh on the rating, and the main risk is the fund’s concentration in the utilities sector, which can be sensitive to regulation, interest rates, and energy price volatility.

Positive Factors

Solid Year-to-Date Performance

The ETF has delivered a modestly positive return so far this year, showing generally steady progress for investors.

Strong Showing from Several Top Holdings

Many of the largest positions, such as Consolidated Edison, Clearway Energy, and MDU Resources, have posted strong gains, helping support the fund’s overall results.

Focused Defensive Sector Exposure

With most assets in utilities, the fund targets a traditionally more defensive area of the market that can offer relative stability during market volatility.

Negative Factors

High Expense Ratio

The fund’s management fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

Sector Concentration in Utilities

More than nine-tenths of the portfolio is in utilities, so the ETF is heavily exposed to the fortunes of a single sector rather than being broadly diversified.

Limited Geographic Diversification

With almost all holdings in U.S. companies, the fund offers little exposure to international markets and may miss opportunities abroad.

FXU vs. SPDR S&P 500 ETF (SPY)

AUM849.36M

RegionNorth America

Expense Ratio0.61%

Beta0.33

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield2.09%

Asset ClassEquity

Index TrackedStrataQuant Utilities Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume531,027

30 Day Avg. Volume828,003

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

51.25

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering41

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FXU Summary

FXU is an exchange-traded fund that focuses on U.S. utility companies by tracking the StrataQuant Utilities Index. It holds businesses that provide everyday services like electricity, water, and natural gas. Well-known names in the fund include Consolidated Edison and Exelon. Investors might consider FXU if they want steady exposure to a defensive sector that can offer diversification and potential income from utility stocks. However, because it is concentrated in utilities, the fund can still go up and down with interest rates, regulation changes, and overall market swings.

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

FXU is very much a pure-play U.S. utilities fund, with names like Consolidated Edison and Exelon providing the steady, defensive backbone of the portfolio. Recently, Clearway Energy and MDU Resources have been the real spark plugs, rising on strong momentum and helping to lift overall returns. On the flip side, PG&E has been dragging the fund, with weak recent trading and lingering regulatory worries. UGI is showing mixed signals, bouncing back over the past few months but still uneven year-to-date, underscoring the fund’s stock-picking twists within a single, regulated sector.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
EIX	Edison International	4.44%	$36.98M	$27.48B	32.96%	77 Outperform
ED	Consolidated Edison	4.30%	$35.79M	$41.12B	17.16%	62 Neutral
PCG	PG&E	4.26%	$35.43M	$39.61B	14.18%	69 Neutral
OGE	OGE Energy	4.17%	$34.67M	$9.64B	5.61%	67 Neutral
EXC	Exelon	4.15%	$34.51M	$49.14B	10.76%	67 Neutral
NFG	National Fuel Gas Company	4.12%	$34.31M	$8.28B	17.50%	77 Outperform
UGI	UGI	3.89%	$32.41M	$8.28B	16.48%	70 Outperform
WTRG	Essential Utilities	3.89%	$32.34M	$11.21B	9.68%	66 Neutral
CWEN	Clearway Energy	3.70%	$30.78M	$8.19B	50.37%	70 Neutral
EVRG	Evergy	3.39%	$28.26M	$18.76B	19.54%	62 Neutral

FXU Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

45.98

Positive

100DMA

46.01

Positive

200DMA

44.31

Positive

Market Momentum

MACD

0.95

Negative

RSI

68.41

Neutral

STOCH

81.90

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 47.30, equal to the 50-day MA of 45.98, and equal to the 200-day MA of 44.31, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXU.

FXU Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FXU	―	―	$849.36M	0.61%	―
RSPN	―	―	$925.22M	0.40%	―
FXH	―	―	$906.15M	0.62%	―
REZ	―	―	$827.15M	0.48%	―
IETC	―	―	$793.43M	0.18%	―
RSPU	―	―	$525.50M	0.40%	―

Performance Comparison

FXU

First Trust Utilities AlphaDEX Fund

49.18

9.72

24.63%

RSPN

Invesco S&P 500 Equal Weight Industrials ETF

―

FXH

First Trust Health Care AlphaDEX Fund

―

REZ

iShares Residential and Multisector Real Estate ETF

―

IETC

iShares Evolved US Technology ETF

―

RSPU

Invesco S&P 500 Equal Weight Utilities ETF

―

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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