Should You Invest in the First Trust Financials AlphaDEX ETF (FXO)?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
ETF Overview: The First Trust Financials AlphaDEX ETF (FXO), launched in 2007, is a passively managed fund that provides broad exposure to the Financials sector, with assets over $919 million and an annual operating expense of 0.62%. It aims to match the performance of the StrataQuant Financials Index and has shown a return of approximately 38.83% over the past year.
Investment Considerations: FXO carries a Zacks ETF Rank of 3 (Hold) and offers a diversified portfolio with a heavy allocation in the Financials sector. Investors may also consider alternative ETFs like Vanguard Financials ETF (VFH) and Financial Select Sector SPDR ETF (XLF) for similar exposure.
Analyst Views on XLF
Wall Street analysts forecast XLF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XLF is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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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.
