NYSE • Last print unknown ago
$67.03—Stale · unknown old
First Trust Consumer Discretionary AlphaDEX Fund (FXD) is an exchange-traded fund that seeks to provide investment results that correspond to the performance of the StrataQuant Consumer Discretionary Index. The fund primarily invests in U.S. consumer discretionary stocks, focusing on companies that exhibit strong growth potential and favorable valuation metrics.
FXD generates revenue primarily through management fees based on the total assets under management. The fund's strategy of selecting stocks based on quantitative factors provides a competitive edge by allowing it to capture growth in the consumer discretionary sector while mitigating risks associated with individual stock selection.
Changes in consumer spending patterns, particularly in discretionary categories like retail and travel
Fluctuations in consumer sentiment as measured by the UMCSENT index
Performance of underlying stocks in the consumer discretionary sector
Market trends influencing the broader asset management industry
Regulatory changes affecting the asset management industry
Technological disruption in investment strategies and platforms
Increasing competition from low-cost index funds and ETFs
Market volatility that may deter investors from allocating to discretionary sectors
Liquidity risks associated with sudden market downturns affecting AUM
Potential for increased operational costs if AUM declines significantly
high - The fund's performance is closely tied to the economic cycle, as consumer discretionary spending typically increases during economic expansions and decreases during recessions.
Rising interest rates can lead to decreased consumer spending, negatively impacting the performance of consumer discretionary stocks and, consequently, the fund's returns.
minimal - FXD does not have significant credit exposure as it primarily invests in equities rather than debt instruments.
growth - Investors looking for exposure to the consumer discretionary sector with a focus on growth potential.
moderate - The fund's volatility is influenced by the consumer discretionary sector's performance, which can be more volatile than other sectors.