This ETF offers exposure to the U.S. materials sector, a corner of the domestic economy that includes companies engaged in the extraction and production of various natural resources (and therefore potentially useful as a means of establishing "indirect" commodity exposure through commodity-intensive companies). Given the sector-specific focus, FXZ likely doesn't deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the materials sector. FXZ seeks to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance. In return for exposure to this strategy, which has historically delivered impressive returns, investors can expect to pay a bit more; FXZ's expense ratio is about 50 basis points higher than low cost options for materials exposure such as FBM and XLB. The unique index construction methodology has some other potential advantages; FXZ maintains much lower concentration of top holdings than do cap-weighted funds such as FBM and XLB. That means that performance isn't as dependent on a handful of large cap stocks, potentially giving a better way to access materials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXZ might be worth a closer look. Those looking to keep a cap on expenses and simply own the broader market have cheaper options available to them.
The adjacent table gives investors an individual Realtime Rating for FXZ on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Materials with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This ETF is not currently available for commission free trading on any platforms.
There are 4 other ETFs in the Materials ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of FXZ relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
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