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Is First Trust Consumer Staples AlphaDEX ETF (FXG) a Strong ETF Right Now?
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Making its debut on 05/08/2007, smart beta exchange traded fund First Trust Consumer Staples AlphaDEX ETF (FXG - Free Report) provides investors broad exposure to the Consumer Staples ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $214.31 million, which makes it one of the average sized ETFs in the Consumer Staples ETFs. Before fees and expenses, FXG seeks to match the performance of the StrataQuant Consumer Staples Index.
The StrataQuant Consumer Staples 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
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 cousins, other things remaining the same.
Operating expenses on an annual basis are 0.63% for FXG, making it one of the most expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.51%.
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.
FXG's heaviest allocation is in the Consumer Staples sector, which is about 94.1% of the portfolio.
Taking into account individual holdings, Freshpet, Inc. (FRPT) accounts for about 4.88% of the fund's total assets, followed by General Mills, Inc. (GIS) and Jbs N.v. (class A) (JBS).
The top 10 holdings account for about 41.36% of total assets under management.
Performance and Risk
The ETF return is roughly 1.68% so far this year and is down about -0.69% in the last one year (as of 09/21/2026). In the past 52-week period, it has traded between $59.70 and $69.38
FXG has a beta of 0.49 and standard deviation of 13.03% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers .
Alternatives
First Trust Consumer Staples AlphaDEX ETF is not a suitable option for investors seeking to outperform the Consumer Staples ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Consumer Staples Index Fund ETF Shares (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the State Street Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples Index Fund ETF Shares has $7.68 billion in assets, State Street Consumer Staples Select Sector SPDR ETF has $14.1 billion. VDC has an expense ratio of 0.09% and XLP 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 Consumer Staples 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 Consumer Staples AlphaDEX ETF (FXG) a Strong ETF Right Now?
Making its debut on 05/08/2007, smart beta exchange traded fund First Trust Consumer Staples AlphaDEX ETF (FXG - Free Report) provides investors broad exposure to the Consumer Staples ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $214.31 million, which makes it one of the average sized ETFs in the Consumer Staples ETFs. Before fees and expenses, FXG seeks to match the performance of the StrataQuant Consumer Staples Index.
The StrataQuant Consumer Staples 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
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 cousins, other things remaining the same.
Operating expenses on an annual basis are 0.63% for FXG, making it one of the most expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.51%.
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.
FXG's heaviest allocation is in the Consumer Staples sector, which is about 94.1% of the portfolio.
Taking into account individual holdings, Freshpet, Inc. (FRPT) accounts for about 4.88% of the fund's total assets, followed by General Mills, Inc. (GIS) and Jbs N.v. (class A) (JBS).
The top 10 holdings account for about 41.36% of total assets under management.
Performance and Risk
The ETF return is roughly 1.68% so far this year and is down about -0.69% in the last one year (as of 09/21/2026). In the past 52-week period, it has traded between $59.70 and $69.38
FXG has a beta of 0.49 and standard deviation of 13.03% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers .
Alternatives
First Trust Consumer Staples AlphaDEX ETF is not a suitable option for investors seeking to outperform the Consumer Staples ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Consumer Staples Index Fund ETF Shares (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the State Street Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples Index Fund ETF Shares has $7.68 billion in assets, State Street Consumer Staples Select Sector SPDR ETF has $14.1 billion. VDC has an expense ratio of 0.09% and XLP 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 Consumer Staples 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.