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

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $821.88 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. FXU seeks to match the performance of the StrataQuant Utilities Index before fees and expenses.

The StrataQuant Utilities 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

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 0.61%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 2.21%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Utilities sector -- about 95.9% of the portfolio.

Looking at individual holdings, National Fuel Gas Company (NFG) accounts for about 4.19% of total assets, followed by Ugi Corporation (UGI) and Pinnacle West Capital Corporation (PNW).

The top 10 holdings account for about 39.9% of total assets under management.

Performance and Risk

So far this year, FXU return is roughly 6.11%, and is up about 14.98% in the last one year (as of 06/09/2026). During this past 52-week period, the fund has traded between $41.72 and $51.33.

The ETF has a beta of 0.61 and standard deviation of 15.45% for the trailing three-year period, making it a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.

Alternatives

First Trust Utilities 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. FXU, then, is not the best option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. However, there are better ETFs in the space to consider.

Vanguard Utilities Index Fund ETF Shares (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the State Street Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities Index Fund ETF Shares has $8.40 billion in assets, State Street Utilities Select Sector SPDR ETF has $22.36 billion. VPU has an expense ratio of 0.09%, and XLU charges 0.08%.

Bottom Line

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