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FXZ - ETF AI Analysis
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First Trust Materials AlphaDEX Fund (FXZ)
Rating:69Neutral
Price Target:―
Positive Factors
Strong Sector Focus
The ETF has significant exposure to the materials sector, which has shown resilience and growth potential in certain market conditions.
Healthy Asset Base
The fund has over $200 million in assets under management, indicating investor confidence and stability.
Diverse Holdings
The ETF includes a variety of companies within its top holdings, reducing reliance on a single stock for performance.
Negative Factors
High Expense Ratio
The fund's expense ratio is relatively high compared to many ETFs, which could eat into long-term returns.
Underperforming Holdings
Several top holdings, such as Alcoa and Eastman Chemical, have shown weak year-to-date performance, which may drag on overall returns.
Limited Geographic Exposure
With nearly all assets concentrated in U.S. companies, the ETF lacks diversification across global markets.
FXZ vs. SPDR S&P 500 ETF (SPY)
AUM246.41M
RegionNorth America
Expense Ratio0.62%
Beta0.99
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield1.55%
Asset ClassEquity
Index TrackedStrataQuant Materials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume30,348
30 Day Avg. Volume23,526
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
74.35Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering38
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXZ Summary
The First Trust Materials AlphaDEX Fund (FXZ) is an ETF that focuses on the Materials sector, which includes industries like metals and mining, chemicals, and construction materials. It uses a unique stock selection method to pick companies with strong growth and value potential, aiming to outperform traditional indexes. Some of its top holdings include well-known companies like Alcoa and Newmont Mining. Investors might consider FXZ for diversification and to benefit from potential growth during periods of economic expansion. However, it’s important to know that this ETF is heavily tied to the Materials sector, which can be sensitive to changes in the economy and commodity prices.
How much will it cost me?The expense ratio for FXZ is 0.62%, which means you’ll pay $6.20 per year for every $1,000 invested. This is higher than average because FXZ is actively managed, using a specialized stock selection process to try to outperform traditional indexes.
What would affect this ETF?FXZ's performance could benefit from increased infrastructure spending or economic growth, which typically drives demand for materials like metals, chemicals, and construction products. However, it may face challenges from rising interest rates or economic slowdowns, which can reduce industrial activity and consumer demand. Additionally, regulatory changes or environmental concerns affecting mining and chemical companies could impact its top holdings negatively.
FXZ Top 10 Holdings
The FXZ ETF leans heavily into the Materials sector, with metals and mining giants like Alcoa and Newmont Mining providing steady support thanks to solid financial performance and bullish momentum. Steel Dynamics and Nucor are also rising contributors, benefiting from strong technical indicators and strategic growth initiatives. However, Eastman Chemical is lagging, weighed down by revenue declines and bearish signals, while CF Industries struggles with recent equity dips. With its U.S.-focused portfolio, FXZ is a bet on cyclical growth, but some holdings are facing headwinds that could temper overall gains.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Alcoa | 5.10% | $12.82M | $16.72B | 63.99% | 76 Outperform | |
| Anglogold Ashanti PLC | 4.91% | $12.33M | $50.24B | 268.96% | 73 Outperform | |
| Mosaic Co | 4.86% | $12.22M | $8.77B | 3.22% | 65 Neutral | |
| Newmont Mining | 4.86% | $12.21M | $124.57B | 174.21% | 81 Outperform | |
| Cf Industries Holdings | 4.76% | $11.95M | $13.27B | -10.95% | 72 Outperform | |
| Eastman Chemical | 4.67% | $11.74M | $7.90B | -23.45% | 72 Outperform | |
| Steel Dynamics | 4.39% | $11.03M | $24.94B | 40.09% | 76 Outperform | |
| Mueller Industries | 3.87% | $9.73M | $14.27B | 59.76% | 78 Outperform | |
| Olin | 3.86% | $9.69M | $2.73B | -29.42% | 52 Neutral | |
| Reliance Steel | 3.79% | $9.53M | $16.50B | 13.46% | 74 Outperform |
FXZ Technical Analysis
Positive
―
Price Trends
63.76
Positive
62.47
Positive
58.86
Positive
Market Momentum
2.34
Negative
78.07
Negative
96.15
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXZ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 67.62, equal to the 50-day MA of 63.76, and equal to the 200-day MA of 58.86, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 78.07 is Negative, neither overbought nor oversold. The STOCH value of 96.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXZ.
FXZ Peer Comparison
Comparison Results
Performance Comparison
FXZ
First Trust Materials AlphaDEX Fund
72.81
13.77
23.32%
FXH
First Trust Health Care AlphaDEX Fund
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IETC
iShares Evolved US Technology ETF
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IYM
iShares U.S. Basic Materials ETF
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FMAT
Fidelity MSCI Materials Index ETF
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RSPM
Invesco S&P 500 Equal Weight Materials 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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