For investors seeking momentum, First Trust Financials AlphaDEX Fund (FXO - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 1.1% from its 52-week low price of $24.31/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
FXO in Focus
FXO focuses mostly on the financial segment of the U.S. market, holding 175 stocks in its basket. It is a mid-cap centric fund with key holdings in the insurance, REITs and banks. The fund charges investors 64 basis points a year in fees and maintains a well-diversified portfolio with only 1.2% of assets allocated to the top firm (see: all the Financials ETFs here).
Why the Move?
The financial sector has been an area to watch lately given the rising prospect of a rate hike by the end of this year. The Fed chair Janet Yellen along with some of key officials recently indicated that a rate hike may come sooner on the back of improving economic scenario. Better-than-expect second-quarter results from some of the behemoths in the domain also played an important role boosting the sector in recent times.
More Gains Ahead?
Currently, FXO has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook, so it is hard to get a handle on its future returns one way or another. However, a positive weighted alpha of 0.76 hints at more gains. So there is definitely some promise for those who want to ride this surging ETF a little further.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, First Trust Financials AlphaDEX Fund (FXO - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 1.1% from its 52-week low price of $24.31/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
FXO in Focus
FXO focuses mostly on the financial segment of the U.S. market, holding 175 stocks in its basket. It is a mid-cap centric fund with key holdings in the insurance, REITs and banks. The fund charges investors 64 basis points a year in fees and maintains a well-diversified portfolio with only 1.2% of assets allocated to the top firm (see: all the Financials ETFs here).
Why the Move?
The financial sector has been an area to watch lately given the rising prospect of a rate hike by the end of this year. The Fed chair Janet Yellen along with some of key officials recently indicated that a rate hike may come sooner on the back of improving economic scenario. Better-than-expect second-quarter results from some of the behemoths in the domain also played an important role boosting the sector in recent times.
More Gains Ahead?
Currently, FXO has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook, so it is hard to get a handle on its future returns one way or another. However, a positive weighted alpha of 0.76 hints at more gains. So there is definitely some promise for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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