Is First Trust Health Care AlphaDEX ETF (FXH) a Strong ETF Right Now?

Core Viewpoint - The First Trust Health Care AlphaDEX ETF (FXH) is a smart beta ETF designed to provide broad exposure to the Health Care sector, with a focus on stock selection based on fundamental characteristics [1][5]. Fund Overview - FXH was launched on May 8, 2007, and has accumulated over $868.7 million in assets, making it one of the larger ETFs in the Health Care category [1][5]. - The fund is managed by First Trust Advisors and aims to match the performance of the StrataQuant Health Care Index, which utilizes the AlphaDEX stock selection methodology [5]. Cost and Expenses - FXH has an annual operating expense ratio of 0.60%, which is comparable to most peer products in the space [6]. - The ETF has a 12-month trailing dividend yield of 0.33% [6]. Sector Exposure and Holdings - FXH is fully allocated to the Health Care sector, with approximately 100% of its portfolio dedicated to this area [7]. - The top holding, Biogen Inc. (BIIB), constitutes about 2.36% of the fund's total assets, with the top 10 holdings accounting for approximately 23.06% of total assets under management [8]. Performance Metrics - Year-to-date, FXH has experienced a loss of about -0.94%, and it is down approximately -4.34% over the last 12 months as of August 13, 2025 [10]. - The ETF has traded between $93.63 and $113.83 in the past 52 weeks, with a beta of 0.73 and a standard deviation of 15.85% over the trailing three-year period, indicating a medium risk profile [10]. Alternatives - While FXH is a viable option for investors looking to outperform the Health Care ETFs segment, there are alternative ETFs such as the Vanguard Health Care ETF (VHT) and the Health Care Select Sector SPDR ETF (XLV) that investors may consider [11][12]. - VHT has $14.81 billion in assets and an expense ratio of 0.09%, while XLV has $31.99 billion in assets with an expense ratio of 0.08% [12].