Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
How It Works 
News - Chart
- Upturn Summary
- Fund Details
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
09/25/2026: 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 37.99% | 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 09/25/2026 |
ETF Fundamentals 
Source: EOD Historical Data • Updated Sep 27, 2026
Fund Basics
| Metric | Value |
|---|---|
| Fund Size (AUM) | $1.06B |
| Issuer | First Trust |
| Expense Ratio | 0.62% |
| Distribution Yield | 1.99% |
| Inception | May 8, 2007 |
Performance
| Period | Total Return |
|---|---|
| YTD | +5.43% |
| 1 Year | +7.19% |
| 3 Year | +20.76% |
| 5 Year | +10.07% |
| 10 Year | +12.42% |
Risk Metrics
| Metric | Value |
|---|---|
| 1Y Volatility | 13.65% |
| 3Y Volatility | 16.85% |
| 3Y Sharpe Ratio | 0.97 |
Ratings
| Metric | Value |
|---|---|
| Morningstar Rating | ★★★★★ |
| Sustainability Rating | 2 / 5 |
| Benchmark | MSCI ACWI NR USD |
Market Cap Distribution
| Cap Size | Weight |
|---|---|
| Small Cap | 54.34% |
| Mid Cap | 32.65% |
| Large Cap | 7.74% |
| Mega Cap | 2.91% |
| Micro Cap | 2.17% |
Top Sectors
| Sector | Weight |
|---|---|
| Financial Services | 94.53% |
| Real Estate | 3.97% |
| Technology | 1.50% |
| Basic Materials | 0.00% |
Asset Allocation
Portfolio Characteristics
| Metric | Value |
|---|---|
| Portfolio P/E | 11.11x |
| Portfolio P/B | 1.45x |
| Portfolio P/S | 1.73x |
| Holdings Turnover | 0.0% |
Top Holdings
| Holding | Weight |
|---|---|
| MarketAxess Holdings | 2.41% |
| FactSet Research Systems | 1.97% |
| Lincoln National | 1.95% |
| The Travelers Companies | 1.83% |
| Central Bancompany | 1.76% |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.
All company names, trademarks, logos, and brands are the property of their respective owners and are used for identification and informational purposes only. Use of these names, trademarks, and logos does not imply endorsement by their respective owners.