The First Trust Industrials/Producer Durables AlphaDEX ETF (FXR Quick QuoteFXR - Free Report) was launched on May 8, 2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $699.68 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. 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.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.6%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.62%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Industrials sector -- about 68.4% of the portfolio. 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).

The top 10 holdings account for about 13.95% of total assets under management.

Performance and Risk

The ETF has gained about 9.38% so far this year and is up about 32.92% in the last one year (as of 04/15/2026). In that past 52-week period, it has traded between $63.22 and $91.51.

The ETF has a beta of 1.13 and standard deviation of 19.12% 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 sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FXR, then, is not the best option for investors seeking exposure to the Industrials ETFs segment of the market. However, there are better ETFs in the space to 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 $9.41 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.78 billion. AIRR has an expense ratio of 0.69%, and XLI charges 0.08%.

Bottom Line

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