Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the First Trust Industrials/Producer Durables AlphaDEX ETF (FXR Quick QuoteFXR - Free Report) , a passively managed exchange traded fund launched on May 8, 2007.

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 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 9, placing it in bottom 44%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $694.44 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

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 0.6%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.78%.

Sector Exposure and Top Holdings

ETFs offer a 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.

This ETF has heaviest allocation in the Industrials sector -- about 68.5% of the portfolio. Financials and Materials round out the top three.

Looking at individual holdings, Accenture Plc (ACN) accounts for about 1.9% of total assets, followed by Paypal Holdings, Inc. (PYPL) and Genpact Limited (G).

The top 10 holdings account for about 13.49% of total assets under management.

Performance and Risk

The ETF has added roughly 6.15% and it's up approximately 6.31% so far this year and in the past one year (as of 10/22/2026), respectively. FXR has traded between $73.09 and $92.27 during this last 52-week period.

The ETF has a beta of 1.07 and standard deviation of 19.29% for the trailing three-year period, making it a medium risk choice in the space. With about 157 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 $8.58 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.54 billion. AIRR has an expense ratio of 0.69%, and XLI charges 0.08%.

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.