(FXD) First Trust Consumer - Ratings and Ratios

The First Trust Consumer Discretionary AlphaDEX Fund (FXD) is an actively managed ETF that invests in a unique index created using the AlphaDEX methodology, aiming to outperform traditional passive indices by selecting stocks from the consumer discretionary sector within the Russell 1000 Index.

The AlphaDEX selection process employs a rules-based approach to identify stocks with potential for positive alpha, typically associated with superior stock performance. By focusing on the consumer discretionary sector, FXD provides exposure to companies involved in industries such as retail, leisure, and automobiles, which are often sensitive to economic cycles.

Given its investment strategy, FXDs performance is closely tied to consumer spending patterns and overall economic health. As a result, it may be more volatile than the broader market during periods of economic downturn or upswing.

Analyzing the , we see that the SMA20 and SMA50 are trending upwards, indicating a short-term bullish trend. However, the SMA200 is higher, suggesting the ETF is still below its long-term trend. The ATR indicates a moderate level of volatility. With the 52W High and Low, we can infer that FXD has shown significant price movements over the past year. Using this information, a potential forecast could be that FXD may continue to consolidate around its current price levels before potentially breaking out or down based on further economic indicators and consumer spending trends.

Considering the , the AUM of $332.74M suggests that FXD has a reasonable size, potentially offering liquidity to investors. Combining this with the technical analysis, a forecast could be made that if the consumer discretionary sector continues to grow or stabilize, FXD might be poised for a potential rebound or continued growth, especially if it can maintain its alpha generation strategy. A key level to watch would be the 52W High of $68.16, as a break above this could signal further upside potential.

To achieve a more precise forecast, further analysis would involve closely monitoring consumer spending trends, economic indicators, and any changes in the AlphaDEX methodology or the composition of the Russell 1000 Index within the consumer discretionary sector. A data-driven approach would involve continuously assessing the ETFs technical indicators alongside fundamental data to adjust the forecast accordingly.