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FAB - ETF AI Analysis

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FAB

First Trust Multi Cap Value AlphaDEX Fund (FAB)

Rating:70Outperform
Price Target:
FAB, the First Trust Multi Cap Value AlphaDEX Fund, earns a solid overall rating thanks to several strong core holdings like Accenture, Cognizant, ConocoPhillips, and EOG Resources, which combine robust financial performance, attractive valuations, and positive earnings outlooks. These strengths are partly offset by weaker names such as Fidelity National Information Services and AIG, where bearish technical trends, valuation concerns, and revenue challenges introduce more risk. The main risk factor for the fund is its exposure to companies showing technical weakness or slowing growth, which could weigh on future returns if conditions don’t improve.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many different sectors, which can help reduce the impact if any single industry runs into trouble.
Strong Overall Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating that its value-focused strategy has been working in the current market.
Supportive Energy and Insurance Holdings
Several energy and insurance stocks among the top holdings have delivered strong results, helping to lift the fund’s overall performance.
Negative Factors
High U.S. Concentration
Almost all of the fund’s assets are invested in U.S. companies, offering very limited geographic diversification outside the United States.
Mixed Performance Among Top Holdings
Some of the largest positions, including major technology and payment companies, have shown weak performance this year, which can drag on returns.
Above-Average Expense Ratio
The fund’s fee is higher than many low-cost index ETFs, which means a larger slice of returns goes toward expenses instead of staying with investors.

FAB vs. SPDR S&P 500 ETF (SPY)

FAB Summary

FAB, the First Trust Multi Cap Value AlphaDEX Fund, is an ETF that follows the Nasdaq AlphaDEX Multi Cap Value Index. It invests in U.S. companies of all sizes that appear undervalued, with big exposure to financials, energy, and consumer businesses. Well-known holdings include PayPal and Accenture. Someone might invest in FAB to get broad, diversified exposure to value stocks that could grow over time if these companies recover or improve. A key risk is that value stocks can stay out of favor for long periods, and the ETF’s price can go up and down with the overall stock market.
How much will it cost me?The expense ratio for the First Trust Multi Cap Value AlphaDEX Fund (FAB) is 0.64%, which means you’ll pay $6.40 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using a proprietary methodology to select and weight stocks for potential growth within the value investing niche.
What would affect this ETF?The ETF's focus on value investing and exposure to sectors like Financials and Energy could benefit from rising interest rates or increased demand for energy, while its U.S. geographic focus might provide stability in a strong domestic economy. However, economic slowdowns, regulatory changes in key sectors like Health Care or Financials, or declining consumer spending could negatively impact its performance. Additionally, the fund's reliance on undervalued stocks means it may face challenges if growth stocks outperform in the broader market.

FAB Top 10 Holdings

FAB’s story is all about U.S. value names, with a clear tilt toward financials and energy. Insurers like Travelers and Allstate are doing the heavy lifting, rising steadily and giving the fund a solid defensive backbone. Energy players ConocoPhillips and EOG Resources are also pulling their weight, benefiting from a firm commodity backdrop. On the flip side, consulting and IT names like Accenture and Cognizant have been lagging, and PayPal’s mixed run shows that not every tech rebound is sticking, keeping overall performance a bit uneven despite the value focus.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Cognizant0.60%$1.01M$24.28B-21.59%
79
Outperform
PayPal Holdings0.57%$969.38K$49.32B-14.75%
76
Outperform
Accenture0.56%$952.63K$99.92B-35.03%
79
Outperform
Global Payments0.51%$869.09K$23.75B7.74%
70
Outperform
Fidelity National Info0.51%$859.14K$23.78B-42.87%
64
Neutral
General Motors0.49%$832.73K$77.57B69.16%
73
Outperform
Conocophillips0.49%$831.31K$145.01B29.88%
78
Outperform
Travelers Companies0.49%$827.18K$78.42B44.92%
78
Outperform
EOG Resources0.48%$814.56K$77.50B27.52%
78
Outperform
AT&T0.48%$814.16K$159.04B-16.22%
71
Outperform

FAB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
101.24
Positive
100DMA
98.49
Positive
200DMA
94.31
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FAB, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 103.76, equal to the 50-day MA of 101.24, and equal to the 200-day MA of 94.31, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAB.

FAB Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$168.88M0.66%
70
Outperform
$919.58M0.13%
69
Neutral
$749.70M0.12%
71
Outperform
$643.83M0.40%
74
Outperform
$591.93M0.28%
73
Outperform
$425.90M0.38%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FAB
First Trust Multi Cap Value AlphaDEX Fund
105.36
24.62
30.49%
VFVA
Vanguard U.S. Value Factor ETF
VLU
SPDR S&P 1500 Value Tilt ETF
LSVD
LSV Disciplined Value ETF
QVAL
Alpha Architect U.S. Quantitative Value ETF
AIVL
WisdomTree U.S. AI Enhanced Value Fund
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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