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FNX - ETF AI Analysis

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FNX

First Trust Mid Cap Core AlphaDEX Fund (FNX)

Rating:68Neutral
Price Target:
FNX’s rating suggests it is a solid but not top-tier mid-cap ETF, supported by several strong holdings with improving fundamentals and attractive valuations. Standout positions like Lithia Motors (LAD), APA, and Genpact (G) help lift the fund’s quality through strong earnings, strategic growth, and generally favorable valuations, while names such as Ovintiv (TSE:OVV) and Tutor Perini (TPC) add some drag due to financial and valuation challenges. The main risk factor is the fund’s concentration in a relatively small set of mid-cap stocks where issues like high leverage, overbought technical signals, and profitability pressures in a few holdings can more noticeably impact overall performance.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum for investors.
Broad Sector Diversification
Holdings are spread across many sectors, including financials, consumer cyclical, industrials, technology, and health care, which helps reduce the impact of weakness in any single area.
Multiple Strong-Performing Top Holdings
Several of the largest positions, particularly in energy and industrial-related companies, have shown strong year-to-date performance, supporting the fund’s overall results.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees.
Heavy U.S. Concentration
With almost all assets in U.S. companies and very little international exposure, the fund is heavily tied to the U.S. market’s fortunes.
Notable Underperforming Holdings
Some top holdings, such as EPAM Systems and Genpact, have shown weak year-to-date performance, which can drag on the ETF’s overall returns.

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

FNX Summary

FNX is an ETF that follows the NASDAQ AlphaDEX Mid Cap Core Index, focusing on medium‑sized U.S. companies across many sectors like financials, industrials, energy, and technology. It uses a rules-based approach to pick stocks with strong growth and value characteristics, giving investors a diversified mix of mid-sized businesses. Well-known holdings include HF Sinclair and CF Industries. Someone might invest in FNX to diversify beyond large, well-known companies and tap into the growth potential of mid-cap stocks. A key risk is that mid-cap stocks can be more volatile and can go up and down with the overall stock market.
How much will it cost me?The expense ratio for FNX is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average for ETFs because FNX uses an actively managed, rules-based stock selection process to target mid-cap companies with growth and value potential.
What would affect this ETF?The FNX ETF, with its focus on mid-cap U.S. companies, could benefit from economic growth and innovation in sectors like technology, industrials, and consumer cyclical, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates, which can negatively impact financial and real estate sectors, or economic slowdowns that could affect mid-cap companies more than larger, established firms. Regulatory changes or sector-specific disruptions could also influence the performance of its top holdings, such as those in energy or materials.

FNX Top 10 Holdings

FNX is leaning heavily on U.S. mid-cap energy names, with SM Energy, HF Sinclair, Ovintiv, Permian Resources, and APA all rising and acting like the fund’s engine, helped by solid earnings and upbeat outlooks. CF Industries adds another cyclical boost, also trending higher. On the other side of the ledger, tech and services names like Genpact and EPAM are lagging, losing steam after earlier strength and tempering overall returns. The result is a U.S.-centric, energy-tilted portfolio where commodity-sensitive winners are doing most of the heavy lifting.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Driveway Vehicle Solutions0.48%$6.73M$8.26B29.80%
76
Outperform
APA0.46%$6.49M$13.18B105.92%
73
Outperform
Genpact0.46%$6.39M$5.81B-21.09%
78
Outperform
Epam Systems0.45%$6.32M$5.03B-35.86%
70
Neutral
HF Sinclair Corporation0.45%$6.30M$14.47B97.09%
68
Neutral
SM Energy0.45%$6.27M$6.87B23.72%
72
Outperform
Ovintiv0.44%$6.22MC$22.79B63.27%
60
Neutral
Victoria's Secret0.44%$6.17M$7.83B368.90%
71
Outperform
Tutor Perini0.44%$6.12M$5.21B74.06%
65
Neutral
Lyft0.43%$6.08M$6.63B28.23%
69
Neutral

FNX Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
143.42
Positive
100DMA
139.16
Positive
200DMA
133.99
Positive
Market Momentum
MACD
1.02
Negative
RSI
60.08
Neutral
STOCH
81.12
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FNX, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 144.62, equal to the 50-day MA of 143.42, and equal to the 200-day MA of 133.99, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNX.

FNX Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.40B0.62%
68
Neutral
$8.14B0.23%
69
Neutral
$7.55B0.35%
73
Outperform
$6.08B0.41%
70
Outperform
$5.62B0.25%
74
Outperform
$4.09B0.38%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FNX
First Trust Mid Cap Core AlphaDEX Fund
146.98
26.28
21.77%
FMDE
Fidelity Enhanced Mid Cap ETF
XMMO
Invesco S&P MidCap Momentum ETF
JHMM
John Hancock Multifactor Mid Cap ETF
XMHQ
Invesco S&P MidCap Quality ETF
DON
WisdomTree U.S. MidCap Dividend 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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