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FXU - ETF AI Analysis
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First Trust Utilities AlphaDEX Fund (FXU)
Rating:68Neutral
Price Target:―
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)
AUM852.50M
RegionNorth America
Expense Ratio0.61%
Beta0.33
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield2.04%
Asset ClassEquity
Index TrackedStrataQuant Utilities Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume573,725
30 Day Avg. Volume829,619
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
52.62Price 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 U.S. utilities story, with the fund’s fate tied to a handful of power and gas names. Edison International and PG&E are doing the heavy lifting, with both stocks rising on solid earnings and improving sentiment, helping pull the fund forward. National Fuel Gas, OGE Energy, and NRG Energy are also adding steady spark, keeping momentum positive. On the flip side, Essential Utilities has been lagging, acting like a small anchor on an otherwise sturdy, defensive utilities lineup with only a minor tilt into energy and industrials.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| National Fuel Gas Company | 4.49% | $38.60M | $9.15B | 25.95% | 77 Outperform | |
| Edison International | 4.46% | $38.35M | $27.60B | 25.84% | 77 Outperform | |
| Consolidated Edison | 4.32% | $37.12M | $41.51B | 7.96% | 62 Neutral | |
| Exelon | 4.27% | $36.68M | $50.96B | 12.74% | 67 Neutral | |
| OGE Energy | 4.23% | $36.34M | $9.97B | 7.30% | 67 Neutral | |
| PG&E | 4.21% | $36.23M | $39.87B | 8.10% | 69 Neutral | |
| Essential Utilities | 4.05% | $34.85M | $11.79B | 5.44% | 66 Neutral | |
| UGI | 3.70% | $31.84M | $7.97B | 12.11% | 70 Outperform | |
| Pinnacle West Capital | 3.47% | $29.79M | $12.44B | 9.82% | 65 Neutral | |
| American Electric Power | 3.46% | $29.75M | $72.26B | 26.57% | 69 Neutral |
FXU Technical Analysis
Positive
―
Price Trends
47.80
Positive
46.77
Positive
45.05
Positive
Market Momentum
0.64
Positive
63.82
Neutral
47.60
Neutral
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 50.15, equal to the 50-day MA of 47.80, and equal to the 200-day MA of 45.05, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXU.
FXU Peer Comparison
Comparison Results
Performance Comparison
FXU
First Trust Utilities AlphaDEX Fund
50.68
10.75
26.92%
RSPN
Invesco S&P 500 Equal Weight Industrials ETF
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FXH
First Trust Health Care AlphaDEX Fund
―
―
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REZ
iShares Residential and Multisector Real Estate ETF
―
―
―
IETC
iShares Evolved US Technology ETF
―
―
―
RSPU
Invesco S&P 500 Equal Weight 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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