Core Viewpoint - The First Trust Materials AlphaDEX ETF (FXZ) is a smart beta ETF designed to provide broad exposure to the Materials sector, aiming to outperform traditional passive indices through a unique stock selection methodology [1][5][6]. Fund Overview - FXZ was launched on May 8, 2007, and has accumulated assets exceeding $215.12 million, categorizing it as an average-sized ETF within the Materials sector [1][5]. - The fund is managed by First Trust Advisors and seeks to match the performance of the StrataQuant Materials Index, which employs the AlphaDEX screening methodology to identify stocks with potential for positive alpha [5][6]. Cost and Expenses - The annual operating expenses for FXZ are 0.61%, which is competitive with similar products in the market [7]. - The ETF has a 12-month trailing dividend yield of 1.83% [7]. Sector Exposure and Holdings - FXZ has a significant allocation to the Materials sector, comprising 83.9% of the portfolio, with Industrials and Energy as the next largest sectors [8]. - The top holding, Eastman Chemical Company (EMN), represents approximately 4.84% of the fund's total assets, while the top 10 holdings account for about 44.65% of FXZ's total assets under management [9]. Performance Metrics - As of July 31, 2025, FXZ has gained approximately 3.53% year-to-date but is down about 10.41% over the past year [11]. - The fund has traded between $46.76 and $67.64 in the last 52 weeks, with a beta of 1.12 and a standard deviation of 23.42% over the trailing three-year period, indicating medium risk [11]. Alternatives - Other ETFs in the Materials sector include the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR) and the Materials Select Sector SPDR ETF (XLB), which have significantly larger asset bases of $4.77 billion and $5.29 billion, respectively [13]. - GUNR has a lower expense ratio of 0.46%, while XLB has a minimal change of 0.08% [13].

Core Viewpoint - The First Trust Materials AlphaDEX ETF (FXZ) is a passively managed ETF that provides broad exposure to the Materials - Broad segment of the equity market, appealing to both institutional and retail investors due to its low costs and tax efficiency [1][2]. Group 1: Fund Overview - Launched on May 8, 2007, FXZ has accumulated over $221.67 million in assets, positioning it as an average-sized ETF in its category [3]. - FXZ aims to match the performance of the StrataQuant Materials Index, which uses a modified equal-dollar weighted methodology to select stocks from the Russell 1000 Index [4]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.61% and a 12-month trailing dividend yield of 1.78%, making it competitive with peer products [5]. - As of July 30, 2025, FXZ has gained approximately 6.47% year-to-date but is down about 8% over the past year, with a trading range between $46.76 and $67.64 [8]. Group 3: Sector Exposure and Holdings - FXZ has a significant allocation in the Materials sector, comprising about 84% of the portfolio, with Eastman Chemical Company (EMN) being the largest holding at approximately 4.84% of total assets [6][7]. - The top 10 holdings represent about 44.65% of total assets under management, indicating a concentrated exposure compared to peers [7][8]. Group 4: Alternatives and Market Position - FXZ carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Materials sector [9]. - Other alternatives include the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR) and the Materials Select Sector SPDR ETF (XLB), which have significantly larger asset bases of $4.86 billion and $5.38 billion, respectively [10].