FXO - ETF AI Analysis
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First Trust Financials AlphaDEX Fund (FXO)
FXO’s rating suggests it is a solid but not top-tier financials-focused ETF, supported by several strong insurance and financial holdings. Companies like Arch Capital Group and Markel stand out with robust earnings, solid financial performance, and strategic growth, which help lift the fund’s overall quality. However, weaker names such as AIG and Chime Financial, which face profitability, revenue, and technical challenges, slightly weigh on the rating, and the main risk is the ETF’s concentration in the financial sector, making it sensitive to downturns in that industry.
FXO vs. SPDR S&P 500 ETF (SPY)
- AUM
- 1.08B
- Region
- North America
- Expense Ratio
- 0.60%
- Beta
- 0.83
- Issuer
- First Trust
- Inception Date
- May 08, 2007
- Dividend Yield
- 2.16%
- Asset Class
- Equity
- Index Tracked
- StrataQuant Financials Index
FXO Summary
FXO is an exchange-traded fund that focuses on U.S. financial companies and follows the StrataQuant Financials Index. It mainly holds banks, insurance firms, and other financial businesses, using a rules-based approach to pick stocks with strong growth and value potential. Well-known names in the fund include Allstate and Hartford Insurance. An investor might choose FXO to get diversified exposure to the financial sector in a single investment, with the potential for long-term growth if financial companies do well. A key risk is that it is heavily tied to financial stocks, so its price can rise or fall sharply with changes in interest rates and the health of the economy.
How much will it cost me?
FXO has an 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 FXO uses an actively managed, rules-based AlphaDEX strategy rather than a simple passive index approach.
What would affect this ETF?
FXO is heavily focused on U.S. financial companies, especially insurance firms, so it could benefit from a strong economy, rising demand for financial services, and stable regulations that support banks and insurers. On the negative side, higher loan defaults, financial sector scandals, or stricter rules on banks and insurance companies could hurt profits, while sharp interest rate moves or a U.S. recession could weigh on the ETF’s performance.
FXO Top 10 Holdings
FXO is essentially a bet on U.S. financials, with insurance names setting the tone. Allstate, Cincinnati Financial, Arch Capital, and White Mountains are all rising lately, giving the fund a solid backbone of steady insurers. Berkshire Hathaway adds a diversified financial powerhouse that’s been quietly supportive rather than explosive. On the flip side, Markel has been lagging and Axis Capital looks mixed, creating a bit of drag. With most of its weight in banks and insurers and little outside the U.S., FXO is tightly focused on the American financial sector.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 CHYM | Chime Financial, Inc. Class A | 1.84% | $19.65M | $11.83B | 73.19% | 64Neutral |
 CINF | Cincinnati Financial | 1.82% | $19.45M | $28.47B | 14.93% | 76Outperform |
 ACGL | Arch Capital Group | 1.82% | $19.41M | $34.92B | 22.24% | 79Outperform |
 ALL | Allstate | 1.80% | $19.19M | $63.05B | 28.69% | 74Outperform |
 BRK.B | Berkshire Hathaway B | 1.79% | $19.16M | $1.22T | 15.76% | 66Neutral |
 MKL | Markel | 1.77% | $18.92M | $23.71B | -3.49% | 82Outperform |
 EG | Everest Group | 1.76% | $18.81M | $15.23B | 28.63% | 64Neutral |
 AXS | Axis Capital | 1.76% | $18.80M | $7.60B | 8.59% | 70Neutral |
 WTM | White Mountains Insurance Group | 1.75% | $18.67M | $5.35B | 18.45% | 73Outperform |
 MTG | MGIC Investment | 1.73% | $18.50M | $5.69B | 3.47% | 78Outperform |
FXO Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXO, the sentiment is Positive. The current price of 64.74 is above the 20-day moving average (MA) of 63.82, above the 50-day MA of 63.50, and above the 200-day MA of 61.11, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 61.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXO.
FXO Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FXO | $64.74 | $69.00(6.58% Upside) | $1.08B | 0.60% | 72Outperform |
 KBWB | $87.62 | $100.51(14.71% Upside) | $6.52B | 0.35% | 74Outperform |
 IYF | $131.99 | $146.74(11.18% Upside) | $3.86B | 0.37% | 72Outperform |
 FNCL | $80.68 | $89.56(11.01% Upside) | $2.33B | 0.08% | 72Outperform |
 IYG | $95.20 | $106.45(11.82% Upside) | $2.26B | 0.37% | 72Outperform |
 KBE | $65.91 | $73.89(12.11% Upside) | $1.53B | 0.35% | 72Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FXO | First Trust Financials AlphaDEX Fund | 64.74 | 7.47 | 13.04% | |
| KBWB | Invesco KBW Bank ETF | 87.62 | 10.98 | 14.33% | |
| IYF | iShares U.S. Financials ETF | 131.99 | 8.92 | 7.25% | |
| FNCL | Fidelity MSCI Financials Index ETF | 80.68 | 6.60 | 8.90% | |
| IYG | iShares US Financial Services ETF | 95.20 | 6.86 | 7.76% | |
| KBE | SPDR S&P Bank ETF | 65.91 | 9.35 | 16.53% |
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.