FXH: FIRST TRUST HEALTH CARE ALPHADEX FUND
What this ETF is trying to do
The FIRST TRUST HEALTH CARE ALPHADEX FUND (ticker: FXH) is an ETF that focuses on the health care sector. It holds a variety of companies involved in medical services and products. Based on the provided data, this fund includes 75 total holdings.
Top Holdings:
• Natera Inc (2.79%)
• Regeneron Pharmaceuticals Inc (2.73%)
• Universal Health Services Inc Class B (2.68%)
• Guardant Health Inc (2.56%)
• Solventum Corp (2.53%)
• Pfizer Inc (2.50%)
• Zimmer Biomet Holdings Inc (2.47%)
• Tenet Healthcare Corp (2.33%)
• Halozyme Therapeutics Inc (2.27%)
• Boston Scientific Corp (2.26%)
Please note that this list is a partial view of the fund's holdings and can change over time.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return. Price return only tracks how much the share price has changed. Total return includes both the price change and any cash distributions (dividends) paid out to investors.
For FXH, the numbers show growth in both areas:
• Year-to-Date (YTD): The price return is approximately 13.66%, while the total return is approximately 14.22%.
• One-Year: The price return is approximately 14.17%, while the total return is approximately 14.88%.
• Three-Year: The price return is approximately 33.74%, while the total return is approximately 36.19%.
To give you an idea of price movement, the current price is $129.37. The estimated price from roughly one year ago was $113.31.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 0.57%. It usually pays these out quarterly, with four payouts recorded over the last 12 months. While distributions provide cash income, they are not the same as total return.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases significantly over time. It is important to distinguish between a simple drop in share price and actual NAV erosion.
For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• The fund has shown positive price returns and total returns over the one-year and three-year periods.
• The data shows no detected price erosion.
Cons
• The distribution yield is relatively low at approximately 0.57%.
Beginner takeaway
When studying FXH, remember that price returns and total returns are different. The total return is a more complete picture because it includes the cash distributions paid to you. Additionally, while some investors seek high yields for income, always look at the overall performance and the erosion-risk score to understand how the fund's value is behaving.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NATERA INC | NTRA | 2.79% |
| 2 | REGENERON PHARMACEUTICALS INC | REGN | 2.73% |
| 3 | UNIVERSAL HEALTH SERVICES INC CLASS B | UHS | 2.68% |
| 4 | GUARDANT HEALTH INC | GH | 2.56% |
| 5 | SOLVENTUM CORP | SOLV | 2.53% |
| 6 | PFIZER INC | PFE | 2.50% |
| 7 | ZIMMER BIOMET HOLDINGS INC | ZBH | 2.47% |
| 8 | TENET HEALTHCARE CORP | THC | 2.33% |
| 9 | HALOZYME THERAPEUTICS INC | HALO | 2.27% |
| 10 | BOSTON SCIENTIFIC CORP | BSX | 2.26% |