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FXZ - ETF AI Analysis

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FXZ

First Trust Materials AlphaDEX Fund (FXZ)

Rating:69Neutral
Price Target:
FXZ’s rating suggests it is a generally solid materials-focused ETF with a mix of strong and more challenged holdings. Standout positions like Mueller Industries, RBC Bearings, and Nucor support the fund’s quality through strong financial performance, bullish or stable technical trends, and constructive earnings updates, while names such as Mosaic and CF Industries introduce some drag due to bearish price momentum and cash flow or market challenges. The main risk is the fund’s concentration in the cyclical materials sector, which can be sensitive to economic slowdowns and commodity price swings.
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)

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 story, with U.S.-listed steel and chemicals names setting the tone. Nucor and Steel Dynamics have been the main engines lately, riding strong momentum in steel, while CF Industries has quietly become a star, benefiting from a firmer backdrop in fertilizers. NewMarket and Reliance Steel add steady support rather than fireworks. On the flip side, Mosaic has been dragging the fund as sentiment around fertilizers has turned choppy, and Anglogold Ashanti’s weaker stretch shows that its gold exposure isn’t doing much heavy lifting right now.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Steel Dynamics5.74%$24.63M$34.62B94.57%
76
Outperform
RBC Bearings5.01%$21.50M$17.71B58.70%
77
Outperform
Anglogold Ashanti PLC4.76%$20.41M$45.77B126.19%
73
Outperform
Newmarket4.75%$20.40M$6.79B17.92%
68
Neutral
Cf Industries Holdings4.46%$19.13M$18.70B30.17%
72
Outperform
Eastman Chemical4.32%$18.53M$8.48B-9.80%
72
Outperform
Nucor4.22%$18.12M$52.84B119.68%
74
Outperform
Mosaic Co3.90%$16.72M$7.15B-37.25%
65
Neutral
Mueller Industries3.89%$16.68M$14.75B76.57%
78
Outperform
Reliance Steel3.68%$15.81M$18.73B25.33%
74
Outperform

FXZ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
78.07
Positive
100DMA
76.16
Positive
200DMA
68.61
Positive
Market Momentum
MACD
0.32
Positive
RSI
59.90
Neutral
STOCH
67.38
Neutral
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 80.05, equal to the 50-day MA of 78.07, and equal to the 200-day MA of 68.61, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXZ.

FXZ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$414.98M0.64%
69
Neutral
$998.95M0.60%
73
Outperform
$982.59M0.40%
72
Outperform
$863.24M0.61%
70
Outperform
$599.81M0.08%
68
Neutral
$174.20M0.40%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXZ
First Trust Materials AlphaDEX Fund
82.22
29.03
54.58%
FTXN
First Trust Nasdaq Oil & Gas ETF
RSPN
Invesco S&P 500 Equal Weight Industrials ETF
FXH
First Trust Health Care AlphaDEX Fund
FMAT
Fidelity MSCI Materials Index ETF
RSPM
Invesco S&P 500 Equal Weight Materials 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.
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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