If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the First Trust Consumer Staples AlphaDEX ETF (FXG), a passively managed exchange traded fund launched on May 8, 2007.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $231.91 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. FXG seeks to match the performance of the StrataQuant Consumer Staples Index before fees and expenses.
The StrataQuant Consumer Staples Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
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 0.63%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 2.38%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector -- about 91.1% of the portfolio.
Looking at individual holdings, Casey's General Stores, Inc. (CASY) accounts for about 5.34% of total assets, followed by Coca-cola Consolidated, Inc. (COKE) and Smithfield Foods, Inc. (SFD).The top 10 holdings account for about 40.06% of total assets under management.
Performance and Risk
Year-to-date, the First Trust Consumer Staples AlphaDEX ETF has gained about 7.18% so far, and is up about 3.91% over the last 12 months (as of 07/20/2026). FXG has traded between $59.695 and $69.38 in this past 52-week period.
The ETF has a beta of 0.49 and standard deviation of 12.81% for the trailing three-year period, making it a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Consumer Staples 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, FXG is a sufficient option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Staples Index Fund ETF Shares (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the State Street Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples Index Fund ETF Shares has $7.96 billion in assets, State Street Consumer Staples Select Sector SPDR ETF has $14.37 billion. VDC has an expense ratio of 0.09%, and XLP charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust Consumer Staples AlphaDEX ETF (FXG): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).