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Is First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) a Strong ETF Right Now?
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A smart beta exchange traded fund, the First Trust Industrials/Producer Durables AlphaDEX ETF (FXR - Free Report) debuted on 05/08/2007, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $681.53 million, this makes it one of the average sized ETFs in the Industrials ETFs. FXR is managed by First Trust Advisors. FXR seeks to match the performance of the StrataQuant Industrials Index before fees and expenses.
The StrataQuant Industrials Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.70%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For FXR, it has heaviest allocation in the Industrials sector --about 67.7% of the portfolio --while Materials and Financials round out the top three.
Looking at individual holdings, Comfort Systems Usa, Inc. (FIX) accounts for about 1.59% of total assets, followed by Ftai Aviation Ltd. (FTAI) and Mastec, Inc. (MTZ).
FXR's top 10 holdings account for about 13.95% of its total assets under management.
Performance and Risk
Year-to-date, the First Trust Industrials/Producer Durables AlphaDEX ETF has added roughly 1.78% so far, and is up roughly 16.21% over the last 12 months (as of 03/19/2026). FXR has traded between $60.85 $91.51 in this past 52-week period.
The ETF has a beta of 1.11 and standard deviation of 18.92% for the trailing three-year period, making it a medium risk choice in the space. With about 146 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Industrials/Producer Durables AlphaDEX ETF is not a suitable option for investors seeking to outperform the Industrials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $8.29 billion in assets, State Street Industrial Select Sector SPDR ETF has $28.46 billion. AIRR has an expense ratio of 0.69% and XLI changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) a Strong ETF Right Now?
A smart beta exchange traded fund, the First Trust Industrials/Producer Durables AlphaDEX ETF (FXR - Free Report) debuted on 05/08/2007, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $681.53 million, this makes it one of the average sized ETFs in the Industrials ETFs. FXR is managed by First Trust Advisors. FXR seeks to match the performance of the StrataQuant Industrials Index before fees and expenses.
The StrataQuant Industrials Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.70%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For FXR, it has heaviest allocation in the Industrials sector --about 67.7% of the portfolio --while Materials and Financials round out the top three.
Looking at individual holdings, Comfort Systems Usa, Inc. (FIX) accounts for about 1.59% of total assets, followed by Ftai Aviation Ltd. (FTAI) and Mastec, Inc. (MTZ).
FXR's top 10 holdings account for about 13.95% of its total assets under management.
Performance and Risk
Year-to-date, the First Trust Industrials/Producer Durables AlphaDEX ETF has added roughly 1.78% so far, and is up roughly 16.21% over the last 12 months (as of 03/19/2026). FXR has traded between $60.85 $91.51 in this past 52-week period.
The ETF has a beta of 1.11 and standard deviation of 18.92% for the trailing three-year period, making it a medium risk choice in the space. With about 146 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Industrials/Producer Durables AlphaDEX ETF is not a suitable option for investors seeking to outperform the Industrials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $8.29 billion in assets, State Street Industrial Select Sector SPDR ETF has $28.46 billion. AIRR has an expense ratio of 0.69% and XLI changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.