First Trust Materials AlphaDEX Fund (FXZ)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, 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) with AI Score 47/100 (Weak). First Trust Materials AlphaDEX Fund (FXZ) is an exchange-traded fund that aims to replicate the performance of the StrataQuant Materials Index. Market cap: 0, Sector: Financial services.
Last analyzed: Mar 17, 2026First 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.
Investment Thesis
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
Key Highlights
- Market Cap of $0.21 billion, 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.
Competitors & Peers
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.
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.
Catalysts
- Ongoing: Government infrastructure spending initiatives driving demand for materials.
- Ongoing: Increased adoption of electric vehicles boosting demand for battery materials.
- Ongoing: Technological advancements improving efficiency in the mining industry.
Risks
- Potential: Economic slowdown impacting demand for materials.
- Potential: Fluctuations in commodity prices affecting profitability.
- Potential: Changes in government regulations impacting the materials sector.
- Ongoing: Competition from other materials-focused ETFs.
Growth Opportunities
- 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.
Opportunities
- Increased infrastructure spending globally.
- Rising demand for specialty chemicals.
- Growth in electric vehicle production.
- Adoption of sustainable and green materials.
Threats
- Economic downturns may negatively impact the materials sector.
- Fluctuations in commodity prices.
- Increased competition from other materials-focused ETFs.
- Changes in government regulations affecting the materials industry.
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.
About FXZ
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 $0.21 billion 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 They Do
- 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.
Business Model
- Operates as an exchange-traded fund (ETF).
- Generates revenue through management fees charged to investors.
- Tracks a specific index to provide targeted market exposure.
Industry Context
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.
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.
Financials
Chart & Info
First Trust Materials AlphaDEX Fund (FXZ) stock price: Price data unavailable
Latest News
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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.
MoonshotScore
What does this score mean?
The MoonshotScore rates FXZ's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Common Questions About FXZ
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. The fund employs the AlphaDEX methodology, which selects and weights stocks based on growth and value factors, aiming to outperform traditional market-cap-weighted indices. FXZ offers a liquid and transparent way to invest in the materials sector, allowing investors to easily buy and sell shares on the open market.
What do analysts say about FXZ stock?
AI analysis is pending for FXZ, so current analyst consensus is unavailable. However, key valuation metrics to consider include the fund's expense ratio, tracking error, and historical performance relative to its benchmark index. Growth considerations should focus on the materials sector's outlook, including demand for raw materials, infrastructure spending, and technological advancements. Investors should also assess the fund's risk profile, considering factors such as commodity price volatility and economic sensitivity. A comprehensive analysis will be available once the AI assessment is complete.
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. Changes in government regulations, such as environmental policies or trade restrictions, could also pose risks to the materials sector and FXZ's investments.
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. The highest-ranking stocks are then included in the index, and their weightings are determined based on their scores. This approach is designed to identify companies with the greatest potential for outperformance within the materials sector, differentiating it from market-cap-weighted indices.
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. Furthermore, changes in regulations impacting the materials sector, such as environmental regulations or trade policies, could indirectly affect the fund's investments and performance, requiring ongoing monitoring and adaptation.
What are the key factors to evaluate for FXZ?
First Trust Materials AlphaDEX Fund (FXZ) currently holds an AI score of 47/100, indicating low score. Key strength: Targeted exposure to the materials sector.. Primary risk to monitor: Potential: Economic slowdown impacting demand for materials.. This is not financial advice.
How frequently does FXZ data refresh on this page?
FXZ prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven FXZ's recent stock price performance?
Recent price movement in First Trust Materials AlphaDEX Fund (FXZ) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Targeted exposure to the materials sector.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
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.