First Trust Materials AlphaDEX Fund
ALTAR
Score™
8.4% info Recommen-
dation
SPECULATIVE
2020E    2021E
P/E
ratio
14.3x P/Sales
ratio
0.7x
P/BV
ratio
1.6x Div.
yield
2.9%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
First Trust Materials AlphaDEX Fund seeks investment results that correspond to the StrataQuant Materials AlphaDEX Index.

FUND BASICS
Category US Equities
Fund Sponsor First Trust Advisors LP
Website www.ftportfolios.com
Inception date May 10, 2007
Assets (mns) $84
Currency USD
Expense ratio 65 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian Bank of New York Mellon
Weighting Tiered
Index replication Full
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 51
Wgt avg mkt cap (mns) $13,625
Large cap (>$10bn) 37.7%
Mid cap ($2-10bn) 59.5%
Small cap (<$2bn) 2.9%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
NEWMONT MINING CORP 3.9 %
CROWN HOLDINGS INC 3.8 %
ALBEMARLE CORP 3.5 %
OWENS CORNING 3.5 %
WESTROCK CO. 3.3 %
RELIANCE STEEL & ALUMINUM 3.2 %
SCOTTS MIRACLE-GRO CO-CL A 3.2 %
OLIN CORP 3.1 %
LYONDELLBASELL INDU-CL A 3.0 %
DOMTAR CORP 3.0 %
Total 33.5 %

TOP COUNTRY EXPOSURE
UNITED STATES 93.9 %
BRITAIN 4.5 %
IRELAND 1.5 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru January 31)
Year-to-date 1 year 5 years 10 years Since Incep.
-7.9% 0.8% 5.7% 9.0% 6.3%

Market Correlations
versus... Beta R-squared
S&P500 1.33 75%
MSCI EAFE 1.38 67%
MSCI Emg. Mkts. 0.99 59%

Technical Indicators
Recent close $33.74
30d moving avg. $38.26
Annualized volatility 18.6%
Short interest (ETF) 0.0%
Short interest (Underlying) 5.0%
Relative strength (RSI) 34

Liquidity measures
Avg. volume (thou.) 78
Turnover 3.1%
Bid/Ask (% of price) 0.07%
ADV underlying (mns) $5,073

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust Materials AlphaDEX Fund ETF based on the alternatives' overlap in portfolio holdings with FXZ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: FXZ Expense: 65 bp ALTAR Score™: 8.4%


ALTERNATIVE ETFs BASED ON OVERLAP WITH FXZ
Ticker Fund
Name
Overlap1
vs FXZ
(%)
Expense
ratio
(bp)
Savings
vs FXZ
(bp)
ALTAR
Score™
(%)
ALTAR
vs FXZ
(%)
JHMA John Hancock Multifactor Materials ETF 49.9 40 25 7.4 -1.0
VAW Vanguard Materials Index Fund 38.8 10 55 6.9 -1.5
RTM Invesco S&P 500 Equal Weight Materials ETF 38.5 40 25 6.7 -1.7
FMAT Fidelity MSCI Materials Index ETF 38.1 8 57 6.9 -1.5
IYM iShares U.S. Basic Materials ETF 31.1 42 23 6.2 -2.2
XLB Materials Select Sector SPDR Fund 30.7 13 52 6.6 -1.8
PYZ Invesco DWA Basic Materials Momentum ETF 29.7 60 5 5.7 -2.7
PAVE Global X U.S. Infrastructure Development ETF 18.6 47 18 6.2 -2.2
MXI iShares Global Materials ETF 18.2 46 19 7.0 -1.4
SZNE Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF 17.0 60 5 7.0 -1.4
XME SPDR S&P Metals & Mining ETF 16.6 35 30 3.2 -5.2
QVAL Alpha Architect U.S. Quantitative Value ETF 15.9 49 16 12.8 +4.4
EQRR ProShares Equities for Rising Rates ETF 14.3 35 30 8.6 +0.2
TPHD Timothy Plan High Dividend Stock ETF 13.6 52 13 7.3 -1.1
CUT Invesco MSCI Global Timber ETF 12.7 55 10 9.6 +1.2
DVP Deep Value ETF 11.3 59 6 14.9 +6.5
SLX VanEck Vectors Steel ETF 10.9 56 9 17.5 +9.1
WBIY WBI Power Factor High Dividend ETF 10.8 70 -5 12.3 +3.9
FNK First Trust Mid Cap Value AlphaDEX Fund 10.8 70 -5 10.5 +2.1

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2015 2016 2017 2018 2019 2020E 2021E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2019 2020E 2021E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
First Trust Materials AlphaDEX Fund
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 14.1 %
Divided by: Fwd. P/BV 1.6 x
Less: Expense ratio 65 bp
Equals: ALTAR Score 8.4 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.62 CATEGORY
AVERAGE
1.56
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.