Is First Trust Consumer Discretionary AlphaDEX ETF (FXD) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 05 2024
0mins
Source: NASDAQ.COM
Overview of FXD ETF: The First Trust Consumer Discretionary AlphaDEX ETF (FXD), launched in 2007, utilizes a smart beta strategy to select stocks based on fundamental characteristics rather than market capitalization, aiming to outperform traditional market cap weighted ETFs in the Consumer Discretionary sector.
Performance and Comparison: As of September 2024, FXD has gained approximately 11.81% over the past year, with an expense ratio of 0.61%. Investors seeking lower-cost alternatives may consider other ETFs like Vanguard Consumer Discretionary ETF (VCR) or Consumer Discretionary Select Sector SPDR ETF (XLY), which have lower expense ratios and larger asset bases.
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Analyst Views on DHI
Wall Street analysts forecast DHI stock price to rise
13 Analyst Rating
4 Buy
7 Hold
2 Sell
Hold
Current: 144.140
Low
117.00
Averages
160.58
High
195.00
Current: 144.140
Low
117.00
Averages
160.58
High
195.00
About DHI
D.R. Horton, Inc. is a homebuilding company. The Company is primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in over 126 markets across 36 states. The Company’s segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding division is primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The Company’s rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 64 markets across 23 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Recovery: The S&P 500 Index rose by 1.08%, the Dow Jones Industrial Average increased by 1.31%, and the Nasdaq 100 Index climbed by 1.66%, reflecting renewed investor confidence in economic recovery, particularly amid a significant drop in oil prices.
- Oil Price Plunge: Crude oil prices fell by over 5% due to hopes for an end to the Iran conflict, which not only lowered inflation expectations but also caused the 10-year Treasury yield to drop by 10 basis points to 4.57%, providing support for the bond market.
- Semiconductor Stocks Rally: Nvidia rose more than 1% ahead of its earnings report, with Q1 sales expected to increase by 80%, drawing market attention to its production ramp-up and competitive strategies, positively impacting the overall tech sector.
- Mortgage Applications Decline: U.S. MBA mortgage applications fell by 2.3% for the week ending May 1, with the purchase mortgage sub-index down 4.1%, indicating pressure on the housing market from high interest rates, as the average 30-year fixed mortgage rate rose to 6.56%.
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- Bill Passage Impact: The House passed the housing bill with a vote of 396-13, which, while imposing restrictions on institutional investors buying single-family homes, removed the requirement for developers to sell newly constructed rental homes within seven years, thus signaling positive prospects for the housing market.
- Top Homebuilder Performance: Following the bill's passage, Toll Brothers saw an 8.16% increase to $134.27, while Dream Finders Homes and Cavco Industries rose by 7.16% and 5.90%, respectively, indicating strong market confidence in the homebuilding sector.
- Strong Market Reaction: Other builders like Smith Douglas Homes and LGI Homes also experienced gains of 5.63% and 5.52%, respectively, suggesting that investor optimism regarding the new policy may stimulate future housing demand.
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- Homebuilders Under Pressure: Home construction stocks slid as the 10-year Treasury yield reached its highest level since January 2025, with D.R. Horton and Lennar both dropping over 1%, reflecting market concerns over rising mortgage rates.
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- Rising Bond Yields: The 10-year T-note yield climbed to a 16-month high of 4.69%, intensifying concerns over rising inflation that may prompt the Fed to pursue tighter monetary policy, thereby impacting stock market performance.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, demonstrating resilience in the housing market that could provide some support for stocks, despite overall market pressures.
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See More
U.S. Stocks Decline as Tech Rally Falters
- Market Decline: The S&P 500 index fell by 0.35%, the Dow Jones Industrial Average by 0.19%, and the Nasdaq 100 by 0.45%, indicating a market reaction to the pullback in tech stocks after reaching record highs last week.
- Rising Bond Yields: The 10-year Treasury note yield rose to a 15-month high of 4.66%, triggering risk-off sentiment in the market and leading to long liquidations in stocks, which exacerbates investor concerns about future economic growth.
- Oil Price Volatility: WTI crude oil prices dropped following President Trump's cancellation of a military strike on Iran, despite the IEA reporting a decline in global oil inventories by about 4 million bpd, with the market expected to remain severely undersupplied even if the conflict ends.
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D.R. Horton to Release Q3 2026 Financial Results on July 21
- Earnings Release Schedule: D.R. Horton will announce its financial results for the third quarter ended June 30, 2026, on July 21 before market open, providing investors with crucial performance metrics and market trend insights.
- Conference Call Details: The company will host a conference call at 8:30 a.m. ET on the same day, with participants encouraged to dial in at 8:25 a.m. using 888-506-0062 and access code 832533 to ensure timely updates.
- Performance Overview: For the twelve months ending March 31, 2026, D.R. Horton closed 83,832 homes in its homebuilding operations, along with 3,593 single-family rental homes and 2,359 multi-family rental units, indicating strong market performance.
- Company Background: D.R. Horton has been the largest homebuilder in the U.S. since 2002, having closed over 1.2 million homes in its 47-year history, showcasing its extensive market reach across 36 states and diverse product offerings.
See More
U.S. Stocks Surge as Oil Prices Plunge, Boosting Market Sentiment
- Market Recovery: The S&P 500 Index rose by 1.08%, the Dow Jones Industrial Average increased by 1.31%, and the Nasdaq 100 Index climbed by 1.66%, reflecting renewed investor confidence in economic recovery, particularly amid a significant drop in oil prices.
- Oil Price Plunge: Crude oil prices fell by over 5% due to hopes for an end to the Iran conflict, which not only lowered inflation expectations but also caused the 10-year Treasury yield to drop by 10 basis points to 4.57%, providing support for the bond market.
- Semiconductor Stocks Rally: Nvidia rose more than 1% ahead of its earnings report, with Q1 sales expected to increase by 80%, drawing market attention to its production ramp-up and competitive strategies, positively impacting the overall tech sector.
- Mortgage Applications Decline: U.S. MBA mortgage applications fell by 2.3% for the week ending May 1, with the purchase mortgage sub-index down 4.1%, indicating pressure on the housing market from high interest rates, as the average 30-year fixed mortgage rate rose to 6.56%.
See More
Homebuilding Stocks Surge After Housing Bill Passage
- Bill Passage Impact: The House passed the housing bill with a vote of 396-13, which, while imposing restrictions on institutional investors buying single-family homes, removed the requirement for developers to sell newly constructed rental homes within seven years, thus signaling positive prospects for the housing market.
- Top Homebuilder Performance: Following the bill's passage, Toll Brothers saw an 8.16% increase to $134.27, while Dream Finders Homes and Cavco Industries rose by 7.16% and 5.90%, respectively, indicating strong market confidence in the homebuilding sector.
- Strong Market Reaction: Other builders like Smith Douglas Homes and LGI Homes also experienced gains of 5.63% and 5.52%, respectively, suggesting that investor optimism regarding the new policy may stimulate future housing demand.
- REITs Rebound: Single-family residential REITs such as Invitation Homes and American Homes 4 Rent also saw slight increases of 1.01% and 0.91%, reflecting market confidence and interest in the rental market.
See More
Analysis of Stock Price Movements for Multiple Companies
- Akamai Stock Decline: Akamai's stock fell 4% after announcing a proposed offering of convertible senior notes valued at $2.6 billion, which could impact its capital structure and future financing capabilities.
- Homebuilders Under Pressure: Home construction stocks slid as the 10-year Treasury yield reached its highest level since January 2025, with D.R. Horton and Lennar both dropping over 1%, reflecting market concerns over rising mortgage rates.
- Micron Technology Bounce: After three consecutive days of losses, Micron's stock rebounded more than 4%, indicating renewed market confidence in memory chip demand, although the overall market remains under selling pressure.
- Marvell Technology Stock Surge: Marvell's stock jumped nearly 6% after Evercore ISI raised its price target from $133 to $155, suggesting analysts are optimistic about its strategic role in custom AI connectivity work.
See More
US Stocks Retreat as Tech Rally Falters
- Market Retreat: The S&P 500 index fell by 0.68% and the Nasdaq 100 by 0.95%, both hitting 1.5-week lows, indicating a weakening confidence in tech stocks that could affect investor sentiment and future capital flows.
- Rising Bond Yields: The 10-year T-note yield climbed to a 16-month high of 4.69%, intensifying concerns over rising inflation that may prompt the Fed to pursue tighter monetary policy, thereby impacting stock market performance.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, demonstrating resilience in the housing market that could provide some support for stocks, despite overall market pressures.
- Oil Price Volatility: WTI crude oil prices dropped over 1% today due to geopolitical factors, with market concerns about future supply tightness intensifying, potentially affecting stock performance in related sectors, particularly airlines and mining stocks.
See More
U.S. Stocks Decline as Tech Rally Falters
- Market Decline: The S&P 500 index fell by 0.35%, the Dow Jones Industrial Average by 0.19%, and the Nasdaq 100 by 0.45%, indicating a market reaction to the pullback in tech stocks after reaching record highs last week.
- Rising Bond Yields: The 10-year Treasury note yield rose to a 15-month high of 4.66%, triggering risk-off sentiment in the market and leading to long liquidations in stocks, which exacerbates investor concerns about future economic growth.
- Oil Price Volatility: WTI crude oil prices dropped following President Trump's cancellation of a military strike on Iran, despite the IEA reporting a decline in global oil inventories by about 4 million bpd, with the market expected to remain severely undersupplied even if the conflict ends.
- Earnings Performance: So far, 83% of the 454 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to rise by 12% year-over-year, but excluding the tech sector, the increase is only 3%, highlighting the fragility of the overall economic recovery.
See More
D.R. Horton to Release Q3 2026 Financial Results on July 21
- Earnings Release Schedule: D.R. Horton will announce its financial results for the third quarter ended June 30, 2026, on July 21 before market open, providing investors with crucial performance metrics and market trend insights.
- Conference Call Details: The company will host a conference call at 8:30 a.m. ET on the same day, with participants encouraged to dial in at 8:25 a.m. using 888-506-0062 and access code 832533 to ensure timely updates.
- Performance Overview: For the twelve months ending March 31, 2026, D.R. Horton closed 83,832 homes in its homebuilding operations, along with 3,593 single-family rental homes and 2,359 multi-family rental units, indicating strong market performance.
- Company Background: D.R. Horton has been the largest homebuilder in the U.S. since 2002, having closed over 1.2 million homes in its 47-year history, showcasing its extensive market reach across 36 states and diverse product offerings.
See More
