At a glance
FXZ charges 0.64% a year, above the 0.28% average of the 7 funds most like it (the most expensive of 8). It has $368.2M in assets, the 6th largest of that group; it paid 1.33% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +24.0% with distributions reinvested (S&P 500: +11.5%), 2nd of those 8 funds; over three years it returned +10.5% a year. At its worst it fell 41.0% in the 2020 crash (S&P 500: 33.7%) and 31.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 18 months after the lows. Its ten largest positions make up 44.0% of the fund, out of 40 in all.
The short version
First Trust Materials AlphaDEX Fund (FXZ) is an ETF that tracks the StrataQuant Materials Index, a rules-based pick of larger, mostly US materials companies such as fertilizer, steel, gold-mining and chemical producers. Most materials funds weight stocks by company size. This one scores stocks on growth and value and gives the top scorers more weight. That approach costs 0.64% a year, more than any of the seven similar funds compared.
Price history
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FXZ +24.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FXZ official prospectus, to Dec 31, 2024 | — | -16.20% | — | +9.07% | +7.67% | +7.66% |
| FXZ price data to Oct 27, 2026 | +19.1% | +24.0% | +10.5% | +7.0% | +10.5% | +8.7% |
- Over the year to Oct 27, 2026, FXZ returned +24.0%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +7.0% and its 10-year +10.5%.
- In the 2020 COVID crash it fell 41% and regained its old high 4.7 months after the low.
- Its worst full calendar year was 2008 (-44.5%); its best was 2009 (+59.5%).
- The deepest fall in its price history was 65.5% (May 16, 2008 to Mar 6, 2009), recovered by Dec 10, 2010.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +19.1% | — |
| 2025 | +16.2% | — |
| 2024 | -16.3% | -16.20% |
| 2023 | +16.3% | +16.10% |
| 2022 | -0.9% | -0.80% |
| 2021 | +30.8% | +30.88% |
| 2020 | +22.5% | +22.21% |
| 2019 | +21.5% | +21.54% |
| 2018 | -22.6% | -22.55% |
| 2017 | +23.8% | +23.68% |
| 2016 | +29.1% | +29.17% |
| 2015 | -9.9% | -9.83% |
| 2014 | -1.0% | — |
| 2013 | +26.9% | — |
| 2012 | +25.2% | — |
| 2011 | -10.4% | — |
| 2010 | +28.2% | — |
| 2009 | +59.5% | — |
| 2008 | -44.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 62% over that stretch · deepest drop along the way 65.5%, back to its old high 21.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 40.6% over that stretch · deepest drop along the way 41%, back to its old high 4.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.7% over that stretch · deepest drop along the way 31.2%, back to its old high 18.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6500 | |
| 2025 | $1.1200 | +9.8% |
| 2024 | $1.0200 | -25.0% |
| 2023 | $1.3600 | +43.2% |
| 2022 | $0.9500 | +37.7% |
| 2021 | $0.6900 | -5.5% |
| 2020 | $0.7300 | +15.9% |
| 2019 | $0.6300 | +40.0% |
| 2018 | $0.4500 | 0.0% |
| 2017 | $0.4500 | +7.1% |
| 2016 | $0.4200 | +20.0% |
| 2015 | $0.3500 | -35.2% |
| 2014 | $0.5400 | +86.2% |
| 2013 | $0.2900 | -59.7% |
| 2012 | $0.7200 | +800.0% |
| 2011 | $0.0800 | -78.9% |
| 2010 | $0.3800 | +52.0% |
| 2009 | $0.2500 | +13.6% |
| 2008 | $0.2200 |
What's inside
As of Jul 31, 2026, the fund held 40 securities; the ten largest made up 44% of assets.
| Holding | Weight | |
|---|---|---|
| CF INDUSTRIES HOLDINGS INC | 5.63% | |
| STEEL DYNAMICS INC | 5.33% | |
| NEWMONT CORP | 4.88% | |
| ANGLOGOLD ASHANTI PLC | 4.77% | |
| COEUR MINING INC | 4.44% | |
| ALCOA CORP | 4.22% | |
| NUCOR CORP | 3.93% | |
| MUELLER INDUSTRIES INC | 3.68% | |
| EASTMAN CHEMICAL COMPANY | 3.56% | |
| MOSAIC COMPANY (THE) | 3.55% | |
| HEXCEL CORP | 3.50% | |
| INTERNATIONAL FLAVORS & FRAGRANCES INC | 3.41% | |
| ALMONTY INDUSTRIES INC | 3.25% | |
| RBC BEARINGS INC | 2.91% | |
| CARPENTER TECHNOLOGY CORP | 2.87% |
By country
United States 86.06%United Kingdom 4.77%Canada 3.25%British Virgin Islands 2.21%Netherlands 2.01%By asset type
Stocks 99.87%RA 0%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $731K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.68%, -3.86%, -3.47%.
How it works
FXZ is an index fund. It normally puts at least 90% of its net assets into the stocks of the StrataQuant Materials Index, which is owned and run by ICE Data Indices. The index starts with the Russell 1000 Index, which holds roughly the 1,000 largest US stocks. It keeps only stocks that pass share-class and liquidity screens. Each stock gets a score based on growth or value factors, and the materials stocks are ranked by that score. The index keeps the larger of the top 75% or 40 stocks. First Trust calls this the AlphaDEX method. It aims for alpha, meaning better returns than a traditional index once risk is taken into account.
The index doesn't size holdings by market value. Instead, it splits the selected stocks into five groups by score, and higher-scoring groups get bigger weights. As of July 31, 2026, the fund held 40 stocks, and the top 10 made up 44% of assets. The largest position, CF Industries, was about 5.6%.
The index is rebuilt and rebalanced every quarter, and the fund follows shortly after. The prospectus filed November 28, 2025 reported 62% portfolio turnover. Trading costs from that turnover are not included in the 0.64% expense ratio. As of July 31, 2026, the fund held no derivatives.
What it really costs
- FXZ charges 0.64% a year, versus an average of 0.28% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FXZ is a screened bet on a single cyclical sector, with deep past declines and a cost well above most materials ETFs.
FXZ could add a small, focused slice of commodity producers to a broader portfolio, but the ride has been rough. The fund fell 65.5% between May 2008 and March 2009 and didn't regain its peak until December 2010. Its worst calendar year was 2008, at −44.5%. In the 2020 crash it dropped 41% and recovered in about five months. In 2022 it fell 31.2% and took until April 2024 to get back to its high. Anyone forced to sell shares during those stretches would have locked in large losses.
Income is modest. The trailing 12-month yield was 1.33% as of October 27, 2026, paid quarterly. The 0.64% expense ratio is more than double the 0.28% average for similar funds. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting materials exposure spread across about 40 stocks, with weights set by growth-and-value scores rather than company size.
- People comfortable with a rules-based strategy that reshuffles holdings quarterly and reported 62% portfolio turnover.
- Holders able to sit through steep swings, such as the 65.5% drop in 2008–2009 and the 41% fall in early 2020.
Look elsewhere if
- Cost-focused investors: Vanguard Materials ETF (VAW) charges 0.09% and Materials Select Sector SPDR (XLB) 0.08%, against FXZ's 0.64%.
- Anyone seeking meaningful income: the trailing yield was 1.33% as of October 27, 2026, paid quarterly.
- Retirees who may need to sell in a downturn: the 2022 drop of 31.2% took until April 2024 to recover.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FXZ this fund | — | 0.64% | $368.2M | +24.0% | +10.5% |
| IYM iShares U.S. Basic Materials ETF | 56% | 0.39% | $1.16B | +24.9% | +16.2% |
| PYZ Invesco Dorsey Wright Basic Materials Momen… | 41% | 0.6% | $72.1M | +6.6% | +17.0% |
| RSPM Invesco S&P 500 Equal Weight Materials ETF | 35% | 0.4% | $177.6M | +21.6% | +12.8% |
| VAW Vanguard Materials ETF | 34% | 0.09% | $4.55B | +13.9% | +13.3% |
| FMAT Fidelity MSCI Materials Index ETF | 33% | 0.084% | $578.7M | +13.8% | +13.3% |
| XME SPDR S&P Metals & Mining ETF | 30% | 0.35% | $4.38B | +3.1% | +27.4% |
| XLB Materials Select Sector SPDR Fund | 30% | 0.08% | $8.17B | +18.5% | -10.3% |
Questions investors ask
What does FXZ invest in?
First Trust's FXZ holds materials stocks chosen by the StrataQuant Materials Index. ICE Data Indices builds that index from the Russell 1000, which covers about 1,000 of the largest US stocks. The index scores materials companies on growth and value, keeps the top 75% (at least 40 stocks), gives higher-scoring groups more weight, and rebalances quarterly. As of July 31, 2026, the fund held 40 stocks. The largest were CF Industries (5.6%), Steel Dynamics (5.3%), Newmont (4.9%), AngloGold Ashanti (4.8%) and Coeur Mining (4.4%).
Is FXZ good for retirement income?
FXZ is not designed as an income fund. Over the past year it paid about $1.02 per share, a yield of 1.33% as of October 27, 2026, with dividends paid quarterly. Returns from materials stocks are also uneven. The prospectus shows FXZ lost 16.2% in 2024 after gaining 16.1% in 2023. It may suit retirees who want a small, deliberate position in fertilizer, steel, gold mining and chemical companies alongside steadier sources of income.
What is the FXZ expense ratio?
FXZ's expense ratio is 0.64% a year, according to its prospectus filed November 28, 2025. That includes a 0.50% management fee, with no fee waiver. It is the most expensive of eight materials funds in our comparison, and the other seven average 0.28%. Vanguard Materials ETF (VAW) charges 0.09%. FXZ also had 62% portfolio turnover, which means it trades a large share of its holdings each year. Those trading costs are not counted in the expense ratio.
What's the difference between FXZ and IYM?
The main differences are cost and how stocks are chosen. In our comparison, iShares U.S. Basic Materials ETF (IYM) shares the most holdings with FXZ, with a 56% overlap. IYM charges 0.39% a year, compared with 0.64% for FXZ. FXZ picks and weights stocks using AlphaDEX growth and value scores. As of October 27, 2026, FXZ returned 24% over one year and IYM returned 24.9%. Over three years, FXZ averaged 10.5% a year and IYM averaged 16.2%.
How risky is FXZ?
FXZ carries the higher risk of a single-sector stock fund. Its biggest drop was 65.5%, from May 2008 to March 2009, and it did not recover until December 2010. It fell 41% in the 2020 COVID crash and 31.2% in the 2022 bear market. Its one-year beta, a measure of how much it moves with the stock market, was 1.06 as of October 27, 2026. Over the 10 years to December 31, 2024, it returned 7.67% a year on average, according to its prospectus.