(FXU) First Trust Utilities - Ratings and Ratios

The First Trust Utilities AlphaDEX Fund (FXU) is an actively managed exchange-traded fund that focuses on the utilities sector, aiming to outperform traditional passive indices by employing the AlphaDEX selection methodology to identify high-alpha stocks within the Russell 1000 Index.

By investing at least 90% of its net assets in the securities comprising the index, FXU adopts a modified equal-dollar weighted approach to optimize returns. The AlphaDEX methodology is designed to objectively select stocks with potential for positive alpha, providing a systematic and rules-based investment strategy.

With a strong presence in the utilities sector, FXU offers investors exposure to a relatively stable and income-generating asset class. The utilities sector is often characterized by its defensive nature, making it an attractive option for investors seeking to mitigate risk during periods of market volatility.

Analyzing the technical data, we observe that FXUs last price is $42.01, slightly below its 20-day simple moving average (SMA) of $42.44, indicating a potential short-term downtrend. However, the 50-day SMA ($41.44) and 200-day SMA ($39.25) suggest a longer-term uptrend. The average true range (ATR) of 0.54 represents a 1.29% daily price movement, indicating moderate volatility.

Considering the fundamental data, FXUs assets under management (AUM) stand at $1.68 billion, demonstrating a significant presence in the market. This substantial AUM suggests that the fund is well-established and has attracted considerable investor interest.

Forecasting FXUs performance, we can anticipate a potential short-term correction due to the current price being below the 20-day SMA. However, the long-term uptrend indicated by the 50-day and 200-day SMAs suggests that the fund may continue to grow in value. With the utilities sector expected to remain relatively stable, FXU is likely to benefit from its defensive nature. Assuming a continued uptrend, we can forecast a potential price target of $45.00 within the next 6-12 months, representing a 7% increase from the current price.