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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
10/26/2026: FXO (2-star) is currently NOT-A-BUY. Pass it for now.
First Trust Financials AlphaDEX Fund (FXO) provides focused exposure to the U.S. financial sector by selecting and weighting stocks based on growth and value factors. Its primary strength is the AlphaDEX methodology, which helps mitigate the concentration risk inherent in market-cap-weighted funds. The fund is best suited for long-term investors who want financial sector exposure but prefer a quantitative, factor-tilted approach. Investors should monitor interest rate trends and regulatory conditions, as these are primary drivers of sector performance. While it offers a unique methodology, potential investors should consider its higher expense ratio compared to passive, broad-market financial ETFs.
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 | While it includes growth factor filtering, the financial sector is often more cyclical and value-oriented than pure growth sectors. |
| Momentum investor | Strong fit while signal remains positive | The AlphaDEX methodology incorporates price momentum elements, making it suitable for investors when the sector is in an uptrend. |
| Value investor | Strong fit | The fund explicitly uses value metrics like book value and cash flow to select and weight holdings. |
| Dividend/Income investor | Mixed fit | Many financial stocks pay dividends, but the primary focus of the fund is factor-based total return rather than yield maximization. |
| Low-risk investor | Weak fit | As a sector-specific equity ETF, it is subject to the inherent volatility and risks of the financial services industry. |
Investor Profile
Ideal Investor Profile
Investors seeking exposure to the financial sector who prefer a factor-based, non-cap-weighted approach to stock selection.
Suitability
Best for long-term investors looking to tilt their sector exposure, rather than active traders or passive index followers.
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Volatility | Medium / high | Financial stocks can experience significant price swings based on interest rate shifts and economic news. |
| Market risk | High | The fund is fully exposed to systemic equity market movements and specifically the financial services industry. |
| Concentration | Medium | While the AlphaDEX methodology spreads weight better than market-cap funds, it remains strictly confined to the financial sector. |
| Tracking/expense | Medium | The expense ratio of 0.61% is higher than passive market-cap-weighted alternatives. |
| Liquidity | Low | The underlying assets are typically highly liquid, minimizing execution risk for most investors. |
| Business/sector quality | Medium | Regulatory environment and credit cycles significantly impact the quality of companies in this sector. |
Risk Analysis
Volatility
FXO exhibits volatility typical of the financial sector, often slightly elevated due to the active weighting strategy.
Market Risk
The fund is highly vulnerable to interest rate cycles, the health of the credit market, and regulatory shifts affecting financial institutions.
What the ETF Owns
| Exposure Type | Exposure | Weight (%) | Retail Investor Read |
|---|---|---|---|
| Sector | Financial Services (Banks, Insurance, Capital Markets) | 99 | This fund offers concentrated exposure to the U.S. financial sector using a factor-based selection process. |
| Cash/collateral | Cash and Cash Equivalents | 1 | A small residual cash position is maintained for daily liquidity and operational needs. |
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 10/26/2026 |
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