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FXZ - ETF AI Analysis

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FXZ

First Trust Materials AlphaDEX Fund (FXZ)

Rating:69Neutral
Price Target:
FXZ, the First Trust Materials AlphaDEX Fund, has a solid overall rating driven mainly by strong, profitable holdings like Newmont Mining and Mueller Industries, which show healthy financial performance, supportive technical trends, and reasonable valuations. However, weaker names such as Almonty Industries, with high debt and negative profitability, and holdings facing valuation or demand challenges slightly weigh on the fund. The main risk factor is its concentration in cyclical materials and mining companies, which can be sensitive to economic conditions and commodity price swings.
Positive Factors
Strong Year-to-Date Performance
The fund has delivered strong gains so far this year, showing solid recent momentum for investors.
Leading Materials Stocks in Top Holdings
Several of the largest positions, especially in fertilizers, metals, and specialty materials, have shown strong performance, helping drive the ETF’s results.
Focused but Not Single-Sector Only
While the ETF is heavily tilted toward materials, it also includes some industrial and consumer cyclical exposure, adding a bit of diversification within its niche.
Negative Factors
High Sector Concentration
Most of the portfolio is in the materials sector, which means the fund can be very sensitive to swings in commodity and materials markets.
Mixed Performance Among Top Holdings
Several major positions have shown weak or lagging performance, which can offset gains from the stronger names and add volatility.
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

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

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 North American materials, with a clear tilt toward gold and metals miners that are currently setting the pace. Anglogold Ashanti, Newmont, and Coeur Mining are all rising, giving the fund a strong tailwind from precious metals. On the industrial side, CF Industries and Nucor look steady to strong, quietly supporting performance. Offsetting that strength, Steel Dynamics has been losing a bit of shine lately, while Mosaic and Alcoa show more mixed signals, occasionally dragging on what is otherwise a miner-driven story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Anglogold Ashanti PLC6.25%$25.40M$59.65B114.49%
73
Outperform
Newmont Mining6.04%$24.58M$138.67B81.79%
81
Outperform
Coeur Mining5.81%$23.61M$22.04B76.83%
69
Neutral
Cf Industries Holdings4.94%$20.09M$19.02B43.98%
72
Outperform
Almonty Industries4.68%$19.04M$5.26B333.25%
51
Neutral
Steel Dynamics4.39%$17.83M$33.81B79.25%
76
Outperform
Alcoa4.19%$17.03M$13.12B60.37%
76
Outperform
Nucor3.38%$13.76M$57.35B68.16%
74
Outperform
Mosaic Co3.35%$13.62M$7.68B-30.01%
65
Neutral
International Flavors & Fragrances3.27%$13.31M$22.23B29.43%
61
Neutral

FXZ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
80.48
Positive
100DMA
80.53
Positive
200DMA
75.22
Positive
Market Momentum
MACD
2.15
Negative
RSI
67.14
Neutral
STOCH
88.82
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FXZ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 83.62, equal to the 50-day MA of 80.48, and equal to the 200-day MA of 75.22, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 67.14 is Neutral, neither overbought nor oversold. The STOCH value of 88.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXZ.

FXZ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$405.04M0.64%
69
Neutral
$870.70M0.48%
70
Neutral
$838.62M0.40%
71
Outperform
$807.74M0.61%
67
Neutral
$630.64M0.08%
68
Neutral
$192.14M0.40%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FXZ
First Trust Materials AlphaDEX Fund
86.02
25.30
41.67%
REZ
iShares Residential and Multisector Real Estate ETF
RSPH
Invesco S&P 500 Equal Weight Health Care ETF
FXU
First Trust Utilities AlphaDEX Fund
FMAT
Fidelity MSCI Materials Index ETF
RSPM
Invesco S&P 500 Equal Weight Materials 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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