Should You Invest in the First Trust Industrials/Producer Durables AlphaDEX ETF (FXR)?

Core Insights - The First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) offers broad exposure to the Industrials - Broad segment of the equity market, appealing to both retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2] Fund Overview - FXR is a passively managed ETF launched on May 8, 2007, with assets exceeding $1.82 billion, making it one of the larger ETFs in its category [3] - The fund aims to match the performance of the StrataQuant Industrials Index, which uses the AlphaDEX screening methodology to select stocks from the Russell 1000 Index [4] Cost Structure - The ETF has an annual operating expense ratio of 0.6%, which is competitive within its peer group, and a 12-month trailing dividend yield of 0.7% [5] Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising approximately 70.8% of the portfolio, with Materials and Financials following [6] - Builders Firstsource, Inc. (BLDR) represents about 1.26% of total assets, with the top 10 holdings accounting for approximately 12.19% of total assets under management [7] Performance Metrics - As of August 4, 2025, FXR has increased by about 1.74% year-to-date and 6.97% over the past year, trading between $60.85 and $83.27 in the last 52 weeks [8] - The ETF has a beta of 1.15 and a standard deviation of 20.39% over the trailing three-year period, indicating medium risk [8] Alternatives - FXR holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Industrials ETFs area [9] - Other alternatives include the Vanguard Industrials ETF (VIS) and the Industrial Select Sector SPDR ETF (XLI), with VIS having $5.94 billion in assets and an expense ratio of 0.09%, while XLI has $22.66 billion and charges 0.08% [10]