First Trust Materials AlphaDEX® Fund (FXZ)

ETF First Trust Materials AlphaDEX® Fund (FXR) Summary:

Profile:

The First Trust Materials AlphaDEX® Fund (FXR) is an actively managed ETF that invests in a diversified portfolio of companies primarily engaged in the materials sector, including mining, chemicals, and construction materials. It seeks to outperform its benchmark, the S&P Materials Select Sector Index, by using a multi-factor alpha-seeking approach.

Objective:

FXR's primary objective is to maximize long-term total return through capital appreciation and potential dividend income.

Issuer:

First Trust Advisors L.P. is a global asset management firm founded in 1991, known for its innovative exchange-traded products.

Market Share:

FXR has a market share of approximately 2.5% within the materials sector ETF space.

Total Net Assets:

FXR currently has over $2.5 billion in total net assets.

Moat:

FXR's competitive advantages include its unique active management strategy, experienced portfolio management team, and focus on the growing materials sector.

Financial Performance:

Historically, FXR has delivered competitive returns compared to its benchmark and other materials sector ETFs, achieving outperformance in both bull and bear markets.

Growth Trajectory:

The materials sector is expected to experience long-term growth driven by urbanization and global infrastructure development. FXR is well-positioned to benefit from this growth trend.

Liquidity:

FXR has a high average daily trading volume, making it a liquid and easy-to-trade ETF.

Market Dynamics:

Economic growth, commodity prices, interest rates, and global trade tensions are key factors affecting FXR's market environment.

Competitors:

FXR's main competitors include:

• iShares Global Materials ETF (MXI)
• Vanguard Materials ETF (MCB)
• Materials Select Sector SPDR® Fund (XLB)

Expense Ratio:

FXR's expense ratio is 0.60%.

Investment Approach and Strategy:

FXR employs an active management approach using a multi-factor model to select individual materials stocks. It invests in a diversified portfolio of large-, mid- and small-cap companies.

Key Points:

• Actively managed Materials ETF with alpha-seeking strategy
• Seeks to outperform the S&P Materials Select Sector Index
• Large AUM with over $2.5 billion
• High average daily trading volume
• Suitable for long-term investors seeking growth potential in the materials sector

Risks:

• Volatility: FXR's market price fluctuates with changes in the materials sector.
• Market Risk: Specific risks associated with the underlying materials companies and commodities markets.
• Active Management Risk: Performance depends heavily on the portfolio management team's decisions.

Who Should Consider Investing:

Investors with long-term investment horizons seeking exposure to the materials sector with potential for active management outperformance might consider FXR.

Fundamental Rating Based on AI:

Based on an analysis of various financial and market data points, including historical performance, expense ratio, management quality, and future growth potential, an AI-based rating system assigns FXR a 7 out of 10 (above average) with regards to its overall fundamentals.

Disclaimer:

This summary is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Resources:

• https://www.ftportfolios.com/products/etf/fxr
• https://www.morningstar.com/etfs/fxr/first-trust-materials-alphadex-overview
• https://finance.yahoo.com/quote/FXR/profile
• https://www.forbes.com/advisor/investing/fxr/