First Trust Materials AlphaDEX Fund (FXZ) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
First Trust Materials AlphaDEX Fund (FXZ) trades at $84.53 with AI Score 47/100 (Grade C). First Trust Materials AlphaDEX Fund (FXZ) is an exchange-traded fund that aims to replicate the performance of the StrataQuant… Market cap: $237M, Sector: Financial services.
Price as of Aug 20, 2026 · Last analyzed: Mar 17, 2026Analyst Coverage for FXZ: FXZ does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FXZ against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FXZ: the 3 scored disciplines are evenly split. Dominant signal: Izzy Englander bullish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
First Trust Materials AlphaDEX Fund (FXZ) Financial Services Profile
First Trust Materials AlphaDEX Fund (FXZ) is an ETF providing exposure to the materials sector through a unique AlphaDEX stock selection process. With $0.21 billion in assets, FXZ offers investors a targeted approach to investing in materials companies, differentiating itself through its index-tracking strategy and sector focus.
What Is the Investment Thesis for FXZ?
The First Trust Materials AlphaDEX Fund (FXZ) presents a targeted investment in the materials sector, driven by its unique AlphaDEX methodology. The fund's potential lies in its ability to outperform traditional market-cap-weighted indices by selecting stocks based on growth and value factors. With a beta of 1.23, FXZ exhibits higher volatility compared to the broader market, which could lead to enhanced returns during favorable market conditions for the materials sector. Key catalysts include increased infrastructure spending and rising demand for raw materials. However, potential risks include economic downturns and fluctuations in commodity prices. Investors may want to evaluate FXZ as a tactical allocation within a diversified portfolio, with a focus on the materials sector's growth prospects.
Based on FMP financials and quantitative analysis
FXZ Key Highlights
Market Cap of $237M, indicating a mid-sized ETF within the materials sector.
- Beta of 1.23, suggesting higher volatility compared to the overall market, which may appeal to investors seeking higher potential returns.
- Tracks the StrataQuant Materials Index, employing the AlphaDEX methodology for stock selection based on growth and value factors.
- Focused investment in materials companies, including chemicals, construction materials, metals, and mining.
- Absence of dividend yield, which may be less attractive to income-focused investors but aligns with a growth-oriented investment strategy.
Who Are FXZ's Competitors?
FXZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AVMC Avantis U.S. Mid Cap Equity ETF | $80.72 | -0.84% | $325M | 47 |
| DBAW Xtrackers MSCI All World ex US Hedged Equity ETF | $48.07 | +0.00% | $276M | 47 |
| EFAA Invesco MSCI EAFE Income Advantage ETF | $56.85 | -0.22% | $640M | 47 |
| FICS First Trust International Developed Capital Strength ETF | $42.19 | -0.69% | $214M | 44 |
| FJP First Trust Japan AlphaDEX Fund | $76.13 | +0.07% | $258M | 47 |
| HTFC Horizon Technology Finance Corp. | $24.97 | +0.00% | $230M | 75 |
| CAGPF Samara Asset Group plc | $2.49 | +0.00% | $228M | 67 |
| LIEN Chicago Atlantic BDC, Inc. | $9.74 | +2.53% | $223M | 86 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FXZ's Key Strengths?
Targeted exposure to the materials sector.
- AlphaDEX methodology for stock selection.
- ETF structure provides liquidity and transparency.
- Relatively low expense ratio compared to actively managed funds.
What Are FXZ's Weaknesses?
Sector-specific focus may lead to higher volatility.
- AlphaDEX methodology may not always outperform market-cap-weighted indices.
- Dependent on the performance of the materials sector.
- No dividend yield, which may be unattractive to some investors.
What Could Drive FXZ Stock Higher?
Government infrastructure spending initiatives driving demand for materials.
- Increased adoption of electric vehicles boosting demand for battery materials.
- Technological advancements improving efficiency in the mining industry.
What Are the Key Risks for FXZ?
Economic slowdown impacting demand for materials.
- Fluctuations in commodity prices affecting profitability.
- Changes in government regulations impacting the materials sector.
- Competition from other materials-focused ETFs.
What Are the Growth Opportunities for FXZ?
- Increased Infrastructure Spending: Government initiatives and private investments in infrastructure projects globally are expected to drive demand for materials such as steel, cement, and aggregates. FXZ, with its focus on materials companies, is well-positioned to benefit from this trend. The global construction market is projected to reach $15.5 trillion by 2030, providing a significant growth opportunity for the fund's underlying holdings. Timeline: Ongoing.
- Rising Demand for Specialty Chemicals: The specialty chemicals market is growing due to increased demand from various industries, including automotive, construction, and electronics. Companies within FXZ's portfolio that produce specialty chemicals are likely to experience revenue growth. The global specialty chemicals market is expected to reach $1.1 trillion by 2028, offering substantial growth potential. Timeline: Ongoing.
- Technological Advancements in Mining: The adoption of advanced technologies in the mining industry, such as automation and data analytics, is improving efficiency and reducing costs. Companies in FXZ's portfolio that are investing in these technologies are expected to gain a competitive advantage. The market for mining automation is projected to reach $4.6 billion by 2027. Timeline: Ongoing.
- Growth in Electric Vehicle Production: The increasing adoption of electric vehicles (EVs) is driving demand for materials like lithium, cobalt, and nickel, which are used in battery production. FXZ's holdings in companies involved in the mining and processing of these materials could benefit from this trend. The global EV market is expected to reach $800 billion by 2027. Timeline: Ongoing.
- Sustainable and Green Materials: There is a growing demand for sustainable and environmentally friendly materials in construction and manufacturing. Companies that produce these materials are likely to experience increased demand. FXZ's portfolio may include companies focused on developing and supplying green materials, positioning the fund to capitalize on this trend. The green building materials market is projected to reach $430 billion by 2027. Timeline: Ongoing.
What Are FXZ's Competitive Advantages?
- AlphaDEX Methodology: The fund's unique stock selection process aims to identify companies with superior growth potential.
- Materials Sector Focus: Provides targeted exposure to a specific sector, allowing investors to fine-tune their portfolio allocation.
- ETF Structure: Offers liquidity and transparency, making it easy for investors to buy and sell shares.
What Does FXZ Do?
The First Trust Materials AlphaDEX Fund (FXZ) is an exchange-traded fund (ETF) designed to track the performance of the StrataQuant Materials Index. Launched with the goal of providing investors with a targeted investment in the materials sector, FXZ employs the AlphaDEX methodology, which seeks to identify stocks with superior growth potential based on various fundamental factors. The fund's underlying index comprises materials companies selected and weighted based on specific growth and value characteristics. FXZ's investment strategy focuses on maximizing returns within the materials sector, which includes companies involved in the production of chemicals, construction materials, metals, and mining. By utilizing the AlphaDEX methodology, the fund aims to outperform traditional market-cap-weighted indices. The fund's holdings are rebalanced and reconstituted periodically to ensure alignment with the index's criteria. As of 2026, FXZ has a market capitalization of $237M and offers investors a focused approach to participating in the materials sector's performance. The fund's structure as an ETF provides liquidity and transparency, allowing investors to easily buy and sell shares on the open market. FXZ does not distribute dividends.
What Products and Services Does FXZ Offer?
- Tracks the StrataQuant Materials Index.
- Employs the AlphaDEX methodology to select and weight stocks.
- Provides exposure to companies in the materials sector.
- Invests in companies involved in the production of chemicals.
- Invests in companies involved in the production of construction materials.
- Invests in companies involved in the production of metals and mining.
How Does FXZ Make Money?
- Operates as an exchange-traded fund (ETF).
- Generates revenue through management fees charged to investors.
- Tracks a specific index to provide targeted market exposure.
What Industry Does FXZ Operate In?
The asset management industry is characterized by intense competition and evolving investment strategies. ETFs like FXZ offer investors targeted exposure to specific sectors, such as materials. The materials sector is influenced by global economic growth, infrastructure development, and commodity prices. FXZ competes with other materials-focused ETFs and actively managed funds, including AVMC, DBAW, EFAA, FICS, and FJP, each with its own investment approach and expense ratio. The fund's AlphaDEX methodology aims to differentiate it from market-cap-weighted peers.
Who Are FXZ's Key Customers?
- Individual investors seeking exposure to the materials sector.
- Institutional investors looking for a targeted investment strategy.
- Financial advisors seeking to diversify client portfolios.
FXZ Valuation & Market Position
With a $237M market cap, First Trust Materials AlphaDEX Fund sits in the micro-cap segment of the market. Relative to its peer group, FXZ's quantitative score of 47/100 is roughly in line with the peer average of 46/100.
Key Financial Metrics
Return on equity for First Trust Materials AlphaDEX Fund stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. FXZ trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.
FXZ Financials
Bull Case vs Bear Case
Bull Case
- Targeted exposure to the materials sector.
- AlphaDEX methodology for stock selection.
- ETF structure provides liquidity and transparency.
- Relatively low expense ratio compared to actively managed funds.
Bear Case
- Sector-specific focus may lead to higher volatility.
- AlphaDEX methodology may not always outperform market-cap-weighted indices.
- Dependent on the performance of the materials sector.
- No dividend yield, which may be unattractive to some investors.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
FXZ Latest News
-
FXZ: Materials Dashboard For July
seekingalpha.com · Jul 17, 2026
FXZ Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FXZ.
Price Targets
Wall Street price target analysis for FXZ.
FXZ MoonshotScore
What does this score mean?
The MoonshotScore rates FXZ 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Common Questions About FXZ (Financial Services)
What does the AI Score mean for FXZ?
FXZ holds an AI Score of 47/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. First Trust Materials AlphaDEX Fund (FXZ) is an exchange-traded fund that aims to replicate the performance of the StrataQuant Materials Index. The fund provides investors exposure to a diversified …
What does First Trust Materials AlphaDEX Fund do?
The First Trust Materials AlphaDEX Fund (FXZ) is an exchange-traded fund designed to track the StrataQuant Materials Index. It provides investors with targeted exposure to the materials sector, including companies involved in the production of chemicals, construction materials, metals, and mining.
What are the main risks for FXZ?
The main risks for FXZ include economic sensitivity, as the materials sector is closely tied to overall economic growth. A slowdown in economic activity could lead to decreased demand for materials, negatively impacting the fund's performance. Commodity price volatility is another significant risk, as fluctuations in prices of raw materials can affect the profitability of companies in the fund's portfolio.
How does First Trust Materials AlphaDEX Fund select its holdings?
First Trust Materials AlphaDEX Fund utilizes the AlphaDEX methodology to select and weight its holdings. This proprietary methodology ranks potential investments based on a variety of growth and value factors. These factors can include metrics such as sales growth, price momentum, and various value ratios.
What regulatory challenges does First Trust Materials AlphaDEX Fund face?
As an exchange-traded fund, First Trust Materials AlphaDEX Fund faces regulatory oversight from the Securities and Exchange Commission (SEC) in the United States. These regulations cover various aspects of the fund's operations, including registration requirements, disclosure obligations, and compliance with investment company regulations. The fund must adhere to rules regarding diversification, custody of assets, and valuation of securities.
What are the key factors to evaluate for FXZ?
First Trust Materials AlphaDEX Fund (FXZ) holds an AI score of 47/100 (low). The First Trust Materials AlphaDEX Fund (FXZ) presents a targeted investment in the materials sector, driven by its unique AlphaDEX methodology. Not financial advice.
How frequently does FXZ data refresh on this page?
FXZ's price was last updated on Aug 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven FXZ's recent stock price performance?
First Trust Materials AlphaDEX Fund (FXZ) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Targeted exposure to the materials sector. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FXZ overvalued or undervalued right now?
First Trust Materials AlphaDEX Fund (FXZ) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis is pending for FXZ, limiting the depth of available insights.
- The materials sector is subject to cyclical trends and commodity price volatility.