For investors seeking momentum, First Trust Industrials/Producer Durables AlphaDEX Fund (FXR - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 32% from its 52-week low price of $108.98/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:
FXR in Focus
This fund uses the AlphaDEX methodology to select stocks from the Russell 1000 Index and ranks them on both growth and value factors. The approach results in a basket of 94 securities with key holdings in machinery, aerospace & defense, airlines and railroads. The product charges 63 bps in annual fees (see: all the Industrial ETFs here).
Why the Move?
The industrial sector has been an area to watch lately given a recovering manufacturing industry. This is especially true as manufacturing activity strongly rebounded in September with the ISM index rising to 51.5 from 49.4 in August. This has injected optimism into the industrial sector, pushing the stocks higher.
More Gains Ahead?
Currently, FXR has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little further.
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