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Upturn AI Summary
First Trust Financials AlphaDEX® Fund(FXO)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for FXO
10/12/2026: FXO (2-star) is currently NOT-A-BUY. Pass it for now.
First Trust Financials AlphaDEX Fund (FXO) provides focused exposure to U.S. financial companies by employing a proprietary, factor-based methodology that selects stocks based on growth and value criteria. Its primary strength lies in its disciplined, systematic approach, offering an alternative to standard market-cap-weighted sector ETFs for those looking to avoid concentration in mega-cap names. It serves as a tactical tool for portfolio rotation, though investors should be mindful of its higher expense ratio and the cyclical, high-risk nature of the financial services sector. FXO is best suited for investors who favor factor-tilting strategies and are prepared for the inherent volatility of the financial industry.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
ETF holdings, costs, diversification, valuation, risks, and market conditions provide supporting context about the fund.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The fund includes growth screens but remains heavily constrained by the cyclical nature of the financial sector. |
| Momentum investor | Strong fit while signal remains positive | The AlphaDEX methodology incorporates factors that can align with momentum when the sector is performing well. |
| Value investor | Strong fit | Value is a core component of the AlphaDEX ranking system used to select holdings. |
| Dividend/Income investor | Mixed fit | While it holds financial stocks that often pay dividends, the strategy prioritizes factor scores over pure yield. |
| Low-risk investor | Weak fit | Sector-specific funds carry high inherent volatility and lack the diversification of broad market indices. |
Investor Profile
Ideal Investor Profile
The ideal investor is someone seeking tactical exposure to the financial sector who believes in a rules-based, factor-tilting methodology to potentially capture value and growth.
Suitability
FXO is best suited for long-term investors looking to tilt their portfolio towards financial services while preferring an active, rules-based strategy over simple market-cap weighting.
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Volatility | Medium / high | Financial stocks are economically sensitive and prone to higher volatility during market shifts. |
| Market risk | High | The fund is fully exposed to the performance of the U.S. financial sector. |
| Concentration | Medium | While diversified across financial sub-sectors, it is limited to a single industry segment. |
| Tracking/expense | Medium | The 0.62% expense ratio is higher than plain-vanilla sector index funds. |
| Liquidity | Low | Underlying holdings are generally large-cap stocks, ensuring decent market liquidity. |
| Business/sector quality | Medium | The quality of the portfolio is determined by the systematic AlphaDEX selection rules. |
Risk Analysis
Volatility
FXO exhibits moderate to high volatility typical of sector-specific financial ETFs, influenced by market sentiment and economic cycles.
Market Risk
Investors face significant sector-specific risk, as the fund is heavily reliant on the health of the U.S. financial system and macroeconomic policy.
What the ETF Owns
| Exposure Type | Exposure | Weight (%) | Retail Investor Read |
|---|---|---|---|
| Sector | U.S. Financial Equities | 99 | This exposure provides broad participation in the U.S. financial services industry through a factor-tilted selection process. |
| Cash/collateral | Cash and Cash Equivalents | 1 | A small cash position is maintained for liquidity and to manage daily inflows and outflows. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Very Smooth
The stock has followed a highly orderly price path with minimal short-term disruption.
Analysis of Past Performance
Type ETF | Historic Profit 39.55% | Avg. Invested days 78 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | ETF Returns Performance  5.0 |
| Profits based on simulation | Last Close 10/12/2026 |
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