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FKU - ETF AI Analysis

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FKU

First Trust United Kingdom AlphaDEX Fund (FKU)

Rating:69Neutral
Price Target:
FKU, the First Trust United Kingdom AlphaDEX Fund, has a solid overall rating, supported by strong holdings like Tritax Big Box REIT, Barclays, IG Group, and EasyJet, which combine attractive valuations, solid financial performance, and generally positive technical trends and corporate actions such as share buybacks. Shell and Beazley also add stability with strong balance sheets, though some short-term technical weakness and cash flow or revenue growth challenges, along with Vodafone’s financial and valuation concerns, slightly temper the fund’s appeal. The main risk factor is its concentration in UK-focused companies, which ties performance closely to the health of the UK market and economy.
Positive Factors
Broad Sector Diversification
The ETF spreads its investments across many sectors, which helps reduce the impact if any single industry runs into trouble.
Mostly Strong Top Holdings
Several of the largest positions, such as Computacenter, Shell, and M&G, have shown strong year-to-date performance, supporting the fund’s overall returns.
Positive Recent Performance
The fund has delivered steady gains so far this year, with recent one-month and three-month results also trending positively.
Negative Factors
High UK Concentration
With almost all assets invested in UK companies, the ETF is heavily exposed to the health of the UK economy and market.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are eaten up by fees over time.
Some Weak Top Holdings
A few key holdings, such as Kingfisher and Associated British Foods, have shown weak year-to-date performance, which can drag on the fund’s results.

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

FKU Summary

The First Trust United Kingdom AlphaDEX Fund (FKU) is an ETF that follows the NASDAQ AlphaDEX United Kingdom Index, giving investors broad access to UK stocks. It uses a rules-based approach to pick companies it believes have stronger growth or value potential, across many sectors like financials, consumer goods, and industrials. Well-known holdings include Shell and EasyJet. Someone might invest in FKU to diversify into the UK market and spread their money across many British companies in one fund. A key risk is that it can rise or fall with the UK stock market, so its value is not guaranteed.
How much will it cost me?The First Trust United Kingdom AlphaDEX Fund (FKU) has an expense ratio of 0.8%, which means you’ll pay $8 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using a proprietary stock selection process to try to outperform traditional market indexes.
What would affect this ETF?The First Trust United Kingdom AlphaDEX Fund (FKU) could benefit from positive developments in the UK economy, such as growth in the financial and consumer cyclical sectors, which make up a significant portion of its holdings. However, challenges like rising interest rates or economic uncertainty in Europe could negatively impact its performance, particularly in sectors like real estate and consumer spending. Additionally, regulatory changes or geopolitical tensions affecting the UK could influence the ETF's returns.

FKU Top 10 Holdings

FKU leans heavily into UK financials and consumer names, with stocks like Computacenter, Softcat, and EasyJet doing much of the heavy lifting thanks to rising share prices and upbeat business trends. Shell adds a steady energy anchor, though its recent moves have been more sideways than exciting. On the flip side, 3i Group has been lagging, and Kingfisher’s mixed performance is taking a bit of shine off the fund. Overall, this is a UK-focused, domestically driven portfolio rather than a global tech-heavy play.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
3i Group plc2.44%$951.74K£29.03B-31.41%
78
Outperform
Shell (UK)2.40%$937.05K£184.15B22.43%
73
Outperform
EasyJet2.38%$927.49K£4.62B20.92%
78
Outperform
Standard Life plc2.34%$913.32K£9.07B38.78%
67
Neutral
JD Sports Fashion2.34%$912.16K£4.56B9.20%
71
Outperform
Computacenter2.33%$907.56K£5.00B105.14%
78
Outperform
Kingfisher2.32%$903.96K£5.09B14.49%
72
Outperform
British Land Company plc2.28%$888.06K£4.51B26.94%
75
Outperform
Softcat2.27%$886.45K£3.90B20.02%
75
Outperform
M&G Plc2.24%$875.40K£8.39B37.79%
61
Neutral

FKU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
53.21
Positive
100DMA
52.14
Positive
200DMA
50.83
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FKU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 54.09, equal to the 50-day MA of 53.21, and equal to the 200-day MA of 50.83, 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 FKU.

FKU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$38.24M0.80%
69
Neutral
$4.10B0.50%
73
Outperform
$897.27M0.09%
72
Outperform
$96.85M0.80%
66
Neutral
$82.86M0.09%
70
Neutral
$41.67M0.59%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FKU
First Trust United Kingdom AlphaDEX Fund
55.34
11.19
25.35%
EWU
iShares MSCI United Kingdom ETF
FLGB
Franklin FTSE United Kingdom ETF
FGM
First Trust Germany AlphaDEX Fund
FLSW
Franklin FTSE Switzerland ETF
EWUS
iShares MSCI United Kingdom Small Cap 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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