FXZ - ETF AI Analysis
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First Trust Materials AlphaDEX Fund (FXZ)
FXZ’s rating suggests it is a solid but not top-tier materials ETF, supported by strong holdings like Newmont Mining and CF Industries, which bring robust financial performance, reasonable valuations, and in CF’s case an attractive dividend. However, weaker names such as Almonty Industries and Aura Minerals, which face high leverage, negative or challenged profitability, and valuation concerns, weigh on the fund’s overall quality. A key risk is the ETF’s concentration in the materials sector, which can make it more sensitive to commodity price swings and sector-specific downturns.
FXZ vs. SPDR S&P 500 ETF (SPY)
- AUM
- 370.68M
- Region
- North America
- Expense Ratio
- 0.64%
- Beta
- 0.95
- Issuer
- First Trust
- Inception Date
- May 08, 2007
- Dividend Yield
- 1.34%
- Asset Class
- Equity
- Index Tracked
- StrataQuant Materials Index
FXZ Summary
FXZ is an exchange-traded fund that focuses on the StrataQuant Materials Index, which tracks U.S. companies in the materials sector, such as metals, chemicals, and construction materials. It uses a rules-based approach to pick stocks it believes have strong growth or value potential. Well-known holdings include Newmont Mining and Alcoa. Investors might consider FXZ if they want diversified exposure to materials companies that can benefit from economic growth and infrastructure spending. However, this fund can be volatile because it is heavily tied to the cyclical materials sector, which can rise and fall with commodity prices and the broader economy.
How much will it cost me?
The expense ratio for FXZ is 0.62%, which means you’ll pay $6.20 per year for every $1,000 invested. This is higher than average because FXZ is actively managed, using a specialized stock selection process to try to outperform traditional indexes.
What would affect this ETF?
FXZ's performance could benefit from increased infrastructure spending or economic growth, which typically drives demand for materials like metals, chemicals, and construction products. However, it may face challenges from rising interest rates or economic slowdowns, which can reduce industrial activity and consumer demand. Additionally, regulatory changes or environmental concerns affecting mining and chemical companies could impact its top holdings negatively.
FXZ Top 10 Holdings
FXZ is leaning heavily into metals and mining, with names like Newmont, Anglogold Ashanti, and Coeur Mining setting the tone. These gold-focused stocks have been rising over the past few months but recently lost some steam, creating a bit of push-and-pull in returns. On the brighter side, CF Industries and steel producers like Nucor and Steel Dynamics have been steady to rising, helping to offset weakness from lagging names such as Alcoa and Mosaic. The fund is largely U.S.-centric, with a clear materials and commodities tilt driving performance.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 AUGO | Aura Minerals | 5.19% | $19.22M | $7.21B | 124.31% | 61Neutral |
 STLD | Steel Dynamics | 5.25% | $19.45M | $35.14B | 67.06% | 76Outperform |
 CF | Cf Industries Holdings | 4.88% | $18.08M | $17.94B | 40.51% | 72Outperform |
 NEM | Newmont Mining | 4.86% | $17.99M | $124.35B | 23.10% | 81Outperform |
 SCCO | Southern Copper | 4.73% | $17.51M | $170.37B | 55.88% | 73Outperform |
 AU | Anglogold Ashanti PLC | 4.62% | $17.12M | $46.22B | 20.64% | 73Outperform |
 AA | Alcoa | 4.71% | $17.44M | $11.00B | 4.70% | 76Outperform |
 NUE | Nucor | 3.71% | $13.73M | $59.15B | 91.42% | 74Outperform |
 OLN | Olin | 3.26% | $12.06M | $1.73B | -34.84% | 52Neutral |
 MLI | Mueller Industries | 3.33% | $12.35M | $13.45B | 13.31% | 78Outperform |
FXZ Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXZ, the sentiment is Negative. The current price of 76.82 is below the 20-day moving average (MA) of 78.18, below the 50-day MA of 81.87, and below the 200-day MA of 78.33, indicating a bearish trend. The MACD of -1.30 indicates Negative momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXZ.
FXZ Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FXZ | $76.82 | $89.00(15.86% Upside) | $370.68M | 0.64% | 69Neutral |
 RSPH | $39.37 | $41.25(4.78% Upside) | $942.18M | 0.40% | 71Outperform |
 REZ | $90.60 | $99.52(9.84% Upside) | $790.49M | 0.48% | 70Neutral |
 QQH | $84.51 | $101.84(20.50% Upside) | $739.06M | 0.98% | 62Neutral |
 FMAT | $57.77 | $69.59(20.46% Upside) | $589.55M | 0.08% | 67Neutral |
 RSPM | $38.89 | $46.04(18.40% Upside) | $177.09M | 0.40% | 66Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FXZ | First Trust Materials AlphaDEX Fund | 76.82 | 16.97 | 28.35% | |
| RSPH | Invesco S&P 500 Equal Weight Health Care ETF | 39.37 | 8.83 | 28.93% | |
| REZ | iShares Residential and Multisector Real Estate ETF | 90.60 | 7.53 | 9.06% | |
| QQH | HCM Defender 100 Index ETF | 84.51 | 7.93 | 10.35% | |
| FMAT | Fidelity MSCI Materials Index ETF | 57.77 | 6.95 | 13.67% | |
| RSPM | Invesco S&P 500 Equal Weight Materials ETF | 38.89 | 6.99 | 21.93% |
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.