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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 Recent Performance
The ETF has shown strong gains over the past three months and year-to-date, indicating positive recent momentum.
Top Holdings Showing Solid Gains
Many of the largest positions, including major metals and chemical companies, have delivered strong year-to-date performance that supports the fund’s returns.
Focused Exposure to Materials Sector
The fund’s heavy tilt toward the materials sector gives investors targeted exposure to companies that can benefit when commodity and industrial demand is strong.
Negative Factors
High Sector Concentration
With most assets in the materials sector and additional weight in related industrials, the fund is vulnerable if these cyclical areas weaken.
Limited Geographic Diversification
Almost all holdings are in U.S. companies, so the ETF offers little geographic diversification if the U.S. market or economy slows.
Above-Average Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the return is eaten up by fees over time.
FXZ vs. SPDR S&P 500 ETF (SPY)
AUM340.45M
RegionNorth America
Expense Ratio0.64%
Beta0.97
IssuerFirst Trust
Inception DateMay 08, 2007
Dividend Yield1.46%
Asset ClassEquity
Index TrackedStrataQuant Materials Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume47,503
30 Day Avg. Volume39,853
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
78.04Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering38
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FXZ Summary
FXZ is an ETF that follows the StrataQuant Materials Index, focusing on U.S. companies that make and process raw materials like metals, chemicals, and construction products. It holds well-known names such as Alcoa and Newmont Mining, giving investors a simple way to invest in the materials sector without picking individual stocks. Someone might consider FXZ if they want diversified exposure to companies that can benefit from economic growth and infrastructure spending. A key risk is that it is heavily tied to the materials sector, so its price can swing a lot with commodity prices and the overall economy.
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 U.S. materials story, with metals and chemicals setting the tone. Alcoa, Newmont, and Anglogold are the main engines right now, all riding stronger metals sentiment and giving the fund a clear tilt toward miners. CF Industries and Mosaic add a fertilizer angle, but their more mixed and recently lagging action keeps them from fully pulling their weight. Names like Eastman Chemical and Steel Dynamics are steadier contributors, helping smooth out the ride in what is otherwise a cyclical, commodity-driven portfolio.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Anglogold Ashanti PLC | 5.34% | $18.24M | $54.70B | 261.09% | 73 Outperform | |
| Cf Industries Holdings | 5.01% | $17.10M | $14.95B | 24.75% | 72 Outperform | |
| Eastman Chemical | 4.94% | $16.88M | $9.16B | -19.81% | 72 Outperform | |
| Newmont Mining | 4.88% | $16.65M | $136.07B | 169.42% | 81 Outperform | |
| Mosaic Co | 4.69% | $16.00M | $9.34B | 14.25% | 65 Neutral | |
| Steel Dynamics | 4.55% | $15.54M | $28.15B | 47.95% | 76 Outperform | |
| Alcoa | 4.53% | $15.46M | $15.59B | 75.84% | 76 Outperform | |
| Timken Company | 4.10% | $14.00M | $7.46B | 33.12% | 76 Outperform | |
| RBC Bearings | 3.98% | $13.58M | $17.44B | 56.58% | 77 Outperform | |
| Olin | 3.73% | $12.73M | $2.84B | -9.38% | 52 Neutral |
FXZ Technical Analysis
Positive
―
Price Trends
70.90
Positive
65.91
Positive
61.78
Positive
Market Momentum
1.94
Positive
61.46
Neutral
49.76
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 75.83, equal to the 50-day MA of 70.90, and equal to the 200-day MA of 61.78, indicating a bullish trend. The MACD of 1.94 indicates Positive momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.76 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
Performance Comparison
FXZ
First Trust Materials AlphaDEX Fund
77.71
20.78
36.50%
FXH
First Trust Health Care AlphaDEX Fund
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RSPN
Invesco S&P 500 Equal Weight Industrials ETF
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FXU
First Trust Utilities AlphaDEX Fund
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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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