FXL - ETF AI Analysis
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First Trust Technology AlphaDEX Fund (FXL)
FXL’s rating suggests it is a solid but not top-tier technology ETF, with its quality supported by strong holdings like Zoom and Cognizant, which show healthy financial performance and positive outlooks driven by AI and cloud-focused strategies. PTC and Atlassian also add strength through solid results and growth initiatives, though concerns about valuation and potential bearish or overbought technical signals introduce some caution. Weaker, more financially challenged names like NIQ and Rubrik, along with profitability and valuation risks across several holdings, and the fund’s concentration in the technology sector, are key factors that hold the overall rating back and increase risk.
FXL vs. SPDR S&P 500 ETF (SPY)
- AUM
- 2.63B
- Region
- North America
- Expense Ratio
- 0.60%
- Beta
- 1.44
- Issuer
- First Trust
- Inception Date
- May 08, 2007
- Dividend Yield
- 0.02%
- Asset Class
- Equity
- Index Tracked
- StrataQuant Technology Index
FXL Summary
FXL is an exchange-traded fund that focuses on U.S. technology stocks and follows the StrataQuant Technology Index using a rules-based “AlphaDEX” strategy to pick and weight companies with strong growth trends. It holds a mix of well-known names and smaller innovators, including companies like Zoom and Atlassian, giving investors broad exposure to the tech sector in a single investment. Someone might invest in FXL to tap into the long-term growth potential of technology and to diversify beyond individual stocks. A key risk is that it is heavily concentrated in tech, so its price can rise and fall sharply with swings in the technology sector.
How much will it cost me?
FXL has an annual expense ratio of 0.60%, which means you’ll pay about $6 per year for every $1,000 invested. This cost is higher than the average ETF because it uses an active, rules-based AlphaDEX strategy rather than simple passive index tracking.
What would affect this ETF?
FXL could benefit if U.S. technology spending grows, cloud and software adoption accelerates, and companies like Atlassian, Zoom, and other top holdings gain from digital transformation trends. On the downside, higher interest rates, slower economic growth, or tighter tech regulations in the U.S. could hurt valuations and earnings across its concentrated technology exposure.
FXL Top 10 Holdings
FXL is leaning hard into U.S. tech, with cloud, software, and cybersecurity names steering the ship. RingCentral has been a standout, rising strongly and giving the fund a helpful tailwind, while Rubrik and SentinelOne add high-growth, data and security flair, though their mixed, sometimes choppy performance can make the ride bumpier. Atlassian and PTC have been steadily rising, reinforcing the fund’s software-heavy tilt. On the weaker side, EPAM and Mobility Global are losing steam, modestly dragging on returns but not dominating the overall picture.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 EPAM | Epam Systems | 2.03% | $53.63M | $7.42B | -14.56% | 70Neutral |
 NIQ | NIQ Global Intelligence PLC | 1.87% | $49.48M | $5.86B | 65.92% | 54Neutral |
 MBGL | Mobility Global Inc | 1.79% | $47.38M | $5.78B | -7.98% | ―― |
 CTSH | Cognizant | 1.77% | $46.74M | $29.10B | -12.24% | 79Outperform |
 PTC | PTC | 1.76% | $46.54M | $21.11B | -1.17% | 73Outperform |
 ROP | Roper Technologies | 1.72% | $45.60M | $47.43B | 5.58% | 71Outperform |
 TEAM | Atlassian | 1.69% | $44.82M | $47.12B | 8.50% | 66Neutral |
 RNG | RingCentral | 1.66% | $44.00M | $6.57B | 160.99% | 63Neutral |
 ZM | Zoom Communications Inc | 1.61% | $42.56M | $26.84B | 6.44% | 81Outperform |
 RBRK | Rubrik, Inc. Class A | 1.62% | $42.81M | $23.77B | 53.71% | 50Neutral |
FXL Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXL, the sentiment is Negative. The current price of 210.32 is below the 20-day moving average (MA) of 220.63, below the 50-day MA of 218.86, and above the 200-day MA of 195.97, indicating a neutral trend. The MACD of -1.62 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 9.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXL.
FXL Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FXL | $210.32 | $234.00(11.26% Upside) | $2.63B | 0.60% | 69Neutral |
 RSPT | $61.99 | $81.16(30.93% Upside) | $5.79B | 0.40% | 71Outperform |
 QTEC | $288.12 | $405.64(40.79% Upside) | $4.26B | 0.55% | 72Outperform |
 SKYY | $155.98 | $198.11(27.01% Upside) | $3.18B | 0.60% | 66Neutral |
 SOXQ | $83.45 | $131.63(57.74% Upside) | $2.72B | 0.19% | 74Outperform |
 XNTK | $327.65 | $465.58(42.10% Upside) | $1.78B | 0.35% | 74Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FXL | First Trust Technology AlphaDEX Fund | 210.32 | 38.00 | 22.05% | |
| RSPT | Invesco S&P 500 Equal Weight Technology ETF | 61.99 | 16.14 | 35.21% | |
| QTEC | First Trust NASDAQ-100 Technology Sector Index Fund | 288.12 | 50.47 | 21.23% | |
| SKYY | First Trust Cloud Computing ETF | 155.98 | 17.49 | 12.63% | |
| SOXQ | Invesco PHLX Semiconductor ETF | 83.45 | 27.07 | 48.01% | |
| XNTK | Spdr Nyse Technology Etf | 327.65 | 41.58 | 14.54% |
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.