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 are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $693.97 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

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

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 0.61%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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 70% of the portfolio. Materials and Financials round out the top three.

Looking at individual holdings, Bwx Technologies, Inc. (BWXT) accounts for about 1.2% of total assets, followed by Mastec, Inc. (MTZ) and Ge Vernova Inc. (GEV).

The top 10 holdings account for about 11.82% of total assets under management.

Performance and Risk

Year-to-date, the First Trust Industrials/Producer Durables AlphaDEX ETF return is roughly 11.05% so far, and is up about 24.53% over the last 12 months (as of 06/16/2026). FXR has traded between $71.49 and $91.51 in this past 52-week period.

The ETF has a beta of 1.08 and standard deviation of 19.25% 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FXR is a sufficient option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

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 $10.81 billion in assets, State Street Industrial Select Sector SPDR ETF has $31.37 billion. AIRR has an expense ratio of 0.69%, and XLI charges 0.08%.

Bottom Line

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