FXL: FIRST TRUST TECHNOLOGY ALPHADEX FUND
ETF Education Report: First Trust Technology Alphadex Fund (FXL)
What this ETF is trying to do
The First Trust Technology Alphadex Fund (ticker: FXL) is an ETF that focuses on the technology sector. It holds a variety of different companies within this industry. Based on the provided data, it holds 113 total companies.
What the numbers show
The current price of one share is $217.28. When we look at how the price has changed over time, we see significant movement:
• One-Year Performance: The one-year price return was approximately 38.94%. This measures only the change in the share price. The one-year total return was approximately 38.95%, which includes the effect of distributions.
• Year-to-Date (YTD): The YTD price return is approximately 29.12%. The YTD total return is also approximately 29.12%.
• Three-Year Performance: Over the last three years, the three-year price return was approximately 94.64%, while the three-year total return was approximately 95.51%.
To understand the growth, we can look at an estimated price from roughly one year ago, which was $156.38. For example, if you had invested $10,000 into this ETF one year ago, your investment would have grown to approximately $13,894 based on the one-year price return, before considering any distributions.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 0.45%. The data shows that distributions are irregular or less frequent, with only one payout recorded in the last 12 months. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. When an ETF's share price drops heavily, it can result in a loss of principal (the original money invested).
For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is described as "good," and there is no severe erosion-risk flag. This means the data does not show signs of the substantial price deterioration often associated with high erosion risk.
Top Holdings
The following are some of the top holdings in this fund. Please note that this is a partial list:
• CTSH (2.25%)
• LEIDOS HOLDINGS INC (2.04%)
• PTC INC (1.95%)
• EPAM SYSTEMS INC (1.89%)
• ZOOM COMMUNICATIONS INC (1.82%)
• AMDOCS LTD (1.70%)
• DELL (1.68%)
• ADOBE INC (1.51%)
• CREDO TECHNOLOGY GROUP HOLDING LTD (1.48%)
• RINGCENTRAL INC CLASS A (1.45%)
*Note: Holdings can change over time. This list is partial.*
Pros
• The ETF has shown strong positive price returns over the one-year and three-year periods.
• The erosion-risk measurements suggest a healthy price history without detected erosion.
Cons
• The distribution yield is quite low (0.45%), which may not appeal to investors seeking high regular income.
• Distributions are irregular rather than frequent.
Beginner takeaway
This ETF has experienced significant share-price growth over the last year and three years. While it provides some distributions, its primary movement has been seen in its price return. Always remember that past performance does not guarantee future results.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | CTSH | 2.50% |
| 2 | EPAM SYSTEMS INC | EPAM | 2.31% |
| 3 | n/a | DELL | 2.04% |
| 4 | LEIDOS HOLDINGS INC | LDOS | 1.97% |
| 5 | AMDOCS LTD | DOX | 1.90% |
| 6 | PTC INC | PTC | 1.81% |
| 7 | RINGCENTRAL INC CLASS A | RNG | 1.77% |
| 8 | ZOOM COMMUNICATIONS INC | ZM | 1.67% |
| 9 | CROWDSTRIKE HOLDINGS INC CLASS A | CRWD | 1.58% |
| 10 | ADOBE INC | ADBE | 1.53% |