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Upturn AI Summary
First Trust Materials AlphaDEX® Fund(FXZ)
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 FXZ
11/06/2026: FXZ (2-star) is currently NOT-A-BUY. Pass it for now.
First Trust Materials AlphaDEX® Fund (FXZ) provides U.S. materials sector exposure using a quantitative, factor-based selection methodology rather than market-cap weighting. Its primary strength lies in its systematic approach to picking growth and value stocks, making it a distinct alternative to standard index funds. It is best utilized as a tactical satellite holding within a broader equity portfolio. Key risks include high cyclicality inherent to the materials industry and moderate tracking error relative to broad market benchmarks. The fund is most suitable for investors who favor factor-based strategies and are comfortable with the volatility of the materials sector.
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 targets growth factors, the materials sector is inherently cyclical rather than a pure growth play. |
| Momentum investor | Strong fit while signal remains positive | The AlphaDEX methodology can capture price momentum when the underlying selection factors are performing well. |
| Value investor | Strong fit | The strategy explicitly selects stocks based on value metrics, making it well-suited for value-oriented strategies. |
| Dividend/Income investor | Mixed fit | While many materials stocks pay dividends, the fund focuses on factor performance rather than high-yield generation. |
| Low-risk investor | Weak fit | The materials sector is characterized by high cyclicality and volatility, which is generally unsuitable for low-risk portfolios. |
Investor Profile
Ideal Investor Profile
The ideal investor is someone seeking tactical, factor-based exposure to the materials sector as part of a diversified portfolio.
Suitability
Best for long-term investors looking to tilt their sector allocation, rather than active day-traders, given the periodic rebalancing strategy.
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Volatility | High | Materials stocks are highly cyclical and often exhibit significant price swings relative to the broader market. |
| Market risk | Medium / high | The fund is fully exposed to equity market downturns, particularly those affecting industrial and raw material demand. |
| Concentration | Medium | Being restricted to the materials sector inherently limits diversification compared to total market funds. |
| Tracking/expense | Medium | The active, quantitative selection process can lead to tracking error relative to a simple market-weighted benchmark. |
| Liquidity | Low | The underlying stocks generally have sufficient volume, keeping liquidity risk at a manageable level for most investors. |
| Business/sector quality | Medium | The fund's performance depends on the health of the basic materials industry, including pricing power and regulatory environments. |
Risk Analysis
Volatility
FXZ exhibits high volatility due to the cyclical nature of the materials sector, which is sensitive to economic growth.
Market Risk
Risks include exposure to commodity price fluctuation, trade policy, and global economic cycles that drive materials demand.
What the ETF Owns
| Exposure Type | Exposure | Weight (%) | Retail Investor Read |
|---|---|---|---|
| Sector | U.S. Basic Materials Equities | 98.5 | This provides diversified exposure to various materials sub-industries using a proprietary factor-based selection methodology. |
| Cash/collateral | Cash and Cash Equivalents | 1.5 | Small cash position held for liquidity and daily fund operational needs. |
Price Behavior
Rolling Over
The price momentum is slowing down and beginning to turn downward.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type ETF | Historic Profit 13.3% | Avg. Invested days 40 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | ETF Returns Performance  3.0 |
| Profits based on simulation | Last Close 11/06/2026 |
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