(FXZ) First Trust Materials - Ratings and Ratios

The First Trust Materials AlphaDEX® Fund (NYSE ARCA: FXZ) is an exchange-traded fund (ETF) designed to provide exposure to the materials and processing sector. The fund typically allocates at least 90% of its net assets to securities included in its underlying index, which is a modified equal-dollar weighted index. This index employs the AlphaDEX® selection methodology to identify and select stocks from the Russell 1000® Index within the materials and processing sector. The AlphaDEX® methodology uses a combination of fundamental and quantitative criteria, such as price momentum, revenue growth, and other factors, to identify stocks with the potential to outperform traditional passive indices.

As of the latest data, FXZ has an average trading volume of 29,291 shares over the past 20 days, with a last price of $57.63. The funds short-term technical trend indicators show a 20-day simple moving average (SMA) of $58.81 and a 50-day SMA of $58.47, while its 200-day SMA stands at $63.36. The Average True Range (ATR) is 0.88, indicating relatively low volatility. The fund manages assets under management (AUM) of $255.26 million, placing it in the mid-sized category for ETFs in the natural resources sector.

Looking ahead, FXZs performance over the next three months will likely be influenced by its current technical setup and fundamental drivers. Based on the technical data, the fund is trading slightly below its 20-day and 50-day SMAs, which may indicate short-term resistance levels. However, the relatively low ATR suggests that price movements are likely to remain contained. From a fundamental perspective, the materials sectors outlook will depend on broader economic conditions, including commodity prices, inflation trends, and industrial demand. If the sector experiences a rebound, FXZ could benefit from its targeted exposure to high-alpha potential stocks in the materials and processing sector.