Skip to content
CYH
  • Health News
  • Health Insurance
  • Health Care
  • Healthy Food
  • Healthy Life
Posted in
  • Health Care

Should You Invest in the First Trust Health Care AlphaDEX ETF (FXH)? – July 14, 2023

by Irma•July 14, 2023

If you’re interested in broad exposure to the Healthcare – Broad segment of the equity market, look no further than the First Trust Health Care AlphaDEX ETF (FXH – Free Report) , a passively managed exchange traded fund launched on 05/08/2007.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversify exposure to a broad group of companies in particular sectors. Healthcare – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7th, placing it in the top 44%.

Index Details

The fund is sponsored by First Trust Advisors. It has secured assets of over $1.56 billion, making it one of the larger ETFs trying to match the performance of the Healthcare – Broad segment of the equity market. FXH seeks to match the performance of the StrataQuant Health Care Index before fees and expenses.

The StrataQuant Health Care Index employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.61%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.28%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has the heaviest allocation in the Healthcare sector–about 100% of the portfolio.

Looking at individual holdings, Catalent, Inc. (CTLT – Free Report) accounts for about 2.33% of total assets, followed by Hca Healthcare, Inc. (HCA – Free Report) and Insulet Corporation (PODD – Free Report) .

The top 10 holdings account for about 21.60% of total assets under management.

Performance and Risk

Year-to-date, the First Trust Health Care AlphaDEX ETF has lost about -0.55% so far, and is up about 3.89% over the last 12 months (as of 07/14/2023). FXH has traded between $96.46 and $114.21 in this past 52-week period.

The ETF has a beta of 0.80 and a standard deviation of 17.97% for the trailing three-year period, making it a medium risk choice in the space. With about 84 holdings, it effectively diversifies company-specific risks.

Alternatives

First Trust Health Care AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FXH is a reasonable option for those seeking exposure to the Health Care ETFs area of ​​the market. Investors might also want to consider some other ETF options in the space.

Vanguard Health Care ETF (VHT – Free Report) tracks the MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV – Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $16.60 billion in assets, Health Care Select Sector SPDR ETF has $40.05 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.

bottom line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on the latest developments in the ETF investing universe, please visit the Zacks ETF Center.

Taggedhealth care administrationhealth care logisticshealth insurance marketplacehealthcare marketplace 2019healthcare.gov login

Post navigation

Previous Article Previous article:
New health teams to fill gaps in care for northeastern Ontario
Next Article Next article:
News of replacement for First Hospital brings hope

Recent Posts

  • Nutrition Month may end in March, but The Food Bank of Waterloo Region keeps the focus on healthy eating
  • California ranks among the 10 best states in the US for a long, healthy life
  • Bird’s Nest Carrot Cake Cupcakes
  • Elon University requires health insurance information before class registration
  • Former Trump advisor Roger Stone faces health insurance woes, pleads for viewers to buy a MyPillow to support him

Tags

aetna affordable health insurance articles on healthy lifestyle choices bbc health news cnn health news daily health news family health insurance florida health insurance exchange healthcare.gov account login page healthcare.gov login health care administration health care marketplace healthcare marketplace 2019 health care plans healthiest foods on the planet health insurance health insurance florida health insurance marketplace health insurance marketplace 2019 health insurance plans health insurance quotes health news health news headlines health news report health news today health news uk healthy food items list healthy food options near me healthy food recipes healthy food to eat healthy life family medicine healthy lifestyle article healthy lifestyle facts healthy lifestyle plan healthy lifestyles individual health insurance new york kaiser family foundation jobs kaiser permanente newsletter marketplace insurance phone number medical news articles obamacare what does health insurance through the marketplace mean? what is healthcare what is health care www.healthnews.com

About Us

  • Contact Us
  • Disclosure Policy
  • Sitemap

Patner Links Backlink

Seedbacklink
Copyright © 2025 CYH.
Powered by WordPress and HybridMag.
  • Health News
  • Health Insurance
  • Health Care
  • Healthy Food
  • Healthy Life

WhatsApp us