FXZ - ETF AI Analysis
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First Trust Materials AlphaDEX Fund (FXZ)
Rating:70Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the year to date and in recent months, indicating positive momentum.
Leading Materials and Industrial Holdings
Many of the top holdings in materials and industrials have delivered strong year-to-date results, helping drive the fund’s returns.
Focused but Still Sector-Diverse
While centered on materials, the fund also holds industrial, consumer cyclical, and technology stocks, adding some diversification across industries.
Negative Factors
High Sector Concentration
A large majority of the portfolio is in the materials sector, which can increase risk if that part of the market weakens.
Single-Country Exposure
Almost all assets are invested in U.S. companies, offering little geographic diversification if the U.S. market faces a downturn.
Above-Average Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
FXZ vs. SPDR S&P 500 ETF (SPY)
AUM391.29M
RegionNorth America
Expense Ratio0.64%
Beta0.97
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield1.38%
Asset ClassEquity
Index TrackedStrataQuant Materials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume57,225
30 Day Avg. Volume57,834
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
90.22Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering39
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXZ Summary
FXZ is an ETF that follows the StrataQuant Materials Index, focusing mainly on U.S. materials companies that make things like steel, chemicals, and construction products. It holds a mix of stocks, including well-known names such as Nucor and Eastman Chemical, giving investors broad exposure to the materials sector in a single investment. Someone might consider FXZ if they want to benefit from economic growth and infrastructure spending, since demand for raw materials often rises in those periods. However, the fund can be volatile and may go up or down sharply with 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
FXZ is very much a materials-and-metals story, with a U.S.-heavy portfolio led by rising names like Steel Dynamics, Nucor, and Carpenter Technology, all benefiting from strong demand for steel and specialty metals. Industrial players such as RBC Bearings and Timken add an extra boost, keeping the fund geared toward manufacturing and infrastructure. On the flip side, Eastman Chemical has been more steady than exciting, while Mosaic is clearly lagging and acting as a bit of a brake. Overall, performance hinges on a concentrated cluster of North American steel and industrial champions.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Steel Dynamics | 5.82% | $22.89M | $36.04B | 96.96% | 76 Outperform | |
| Newmarket | 5.64% | $22.17M | $7.18B | 15.42% | 68 Neutral | |
| RBC Bearings | 5.42% | $21.29M | $20.22B | 69.37% | 77 Outperform | |
| Carpenter Technology | 5.00% | $19.67M | $29.14B | 124.88% | 75 Outperform | |
| Timken Company | 4.62% | $18.16M | $9.89B | 99.45% | 76 Outperform | |
| Nucor | 4.21% | $16.56M | $55.53B | 94.40% | 74 Outperform | |
| Eastman Chemical | 4.01% | $15.76M | $8.29B | -4.07% | 72 Outperform | |
| Reliance Steel | 3.93% | $15.45M | $20.23B | 30.44% | 74 Outperform | |
| Anglogold Ashanti PLC | 3.84% | $15.08M | $45.89B | 78.53% | 73 Outperform | |
| Cf Industries Holdings | 3.81% | $14.97M | $15.81B | 7.32% | 72 Outperform |
FXZ Technical Analysis
Neutral
―
Price Trends
80.88
Negative
78.64
Positive
71.36
Positive
Market Momentum
-0.56
Positive
41.58
Neutral
10.97
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXZ, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 81.43, equal to the 50-day MA of 80.88, and equal to the 200-day MA of 71.36, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 41.58 is Neutral, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FXZ.
FXZ Peer Comparison
Comparison Results
Performance Comparison
FXZ
First Trust Materials AlphaDEX Fund
78.79
20.67
35.56%
FXH
First Trust Health Care AlphaDEX Fund
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REZ
iShares Residential and Multisector Real Estate ETF
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FTXN
First Trust Nasdaq Oil & Gas 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.
DisclaimerThis 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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