The $2.5 billion fund will mark its 14th anniversary in May. Though it slightly lagged the broader market this year through Wednesday’s close, FXL has outperformed over the longer haul. The ETF’s returned 25.5%, 31.1% and 17% over the past three, five and 10 years, vs. 11.4%, 17% and 13.4% for SPDR S&P 500 Trust (SPY).
The top five holdings include desktop software maker PagerDuty (PD) and four chip and semiconductor equipment stocks: Applied Materials (AMAT), Lam Research (LRCX), Teradyne (TER) and Intel (INTC). Each represented just under 2% of the 103-stock portfolio.
PagerDuty, which came public in April 2019, has yet to turn an annual profit. But it’s posted double-digit sales growth the past two fiscal years. Analysts expect revenue to increase 27% for the current fiscal year ending in January and 24% in FY 2022.
The company provides a software-as-a-service platform that monitors information technology performance. Shares surged 78% last year, far ahead of the S&P 500’s 16% gain. The stock is extended from a 37.34 cup-base entry and rebound off its 10-week line.
Apple Stock Near Buy Point
Applied Materials is still extended from a 90.71 buy point of a three weeks tight cleared in early January, according to MarketSmith chart analysis. IBD Stock Checkup assigns the chip gear maker a best possible 99 Composite Rating, which gives investors a quick way to gauge a stock’s key growth traits.
That puts it at the top of the 34-stock chip equipment group, along with Lam Research and Teradyne, which also earn a 99 CR. Applied Materials rose 41% last year, while Lam rallied 62% and Teradyne vaulted 76%.
Intel stock fell 17% last year. But it’s now working on the right side of a cup with handle. The Dow Jones stock’s composite score is a lackluster 60, mostly due to a low 32 Relative Strength Rating. That means 68% of all other stocks are beating Intel.
It’s just one of the First Trust ETF’s many holdings. Others include leaders such as Advanced Micro Devices (AMD), Apple (AAPL) and Marvell Technology (MRVL). Apple stock soared 81% last year and recently cleared a 138.89 buy point. It’s an IBD Leaderboard stock. AMD stock surged 100%.
FXL charges a 0.61% expense ratio.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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