FXG ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The First Trust Consumer Staples AlphaDEX Fund (FXG) is a smart beta ETF that builds a U.S. consumer staples portfolio using AlphaDEX quantitative selection and a modified equal weighting method. Differences in management fee, strategy, and dividend structure versus market-cap-weighted ETFs such as XLP and VDC are the key selection criteria.
SubscribeWhat Is the First Trust Consumer Staples AlphaDEX Fund ETF?
It is a smart beta ETF that scores U.S. consumer staples stocks within the Russell 1000 using the AlphaDEX selection method and builds its portfolio from the results. Instead of market-cap weighting, it holds positions using modified equal weighting, so the allocation to small and mid-sized stocks is relatively high.
It suits investors who want exposure to the consumer staples sector, want to reduce the large-cap concentration of market-cap-weighted funds, and prefer a quantitative selection strategy.
It is a passive (index-tracking) ETF managed by First Trust.
How Does the First Trust Consumer Staples AlphaDEX Fund Invest?
| Item | Details |
|---|---|
| Tracked Index | Nasdaq AlphaDEX Consumer Staples Index |
| Management Style | Passive (rule-based quantitative selection) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Issuer | First Trust |
| Expense Ratio | 0.63% |
The fund scores the Russell 1000 consumer staples universe on growth and value metrics, selects the top-ranked stocks, and assigns modified equal weights by score tier. Because the holdings and weights are recalculated every quarter, turnover tends to be higher than the category average, and the structure aims for diversification so that the fund does not become overly concentrated in one or two large stocks.
- AlphaDEX quantitative selection method
- Modified equal weighting structure rather than market-cap weighting
First Trust Consumer Staples AlphaDEX Fund Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) are $207.2M, and the expense ratio is 0.63% per year.
The management fee is somewhat higher than that of comparable consumer staples ETFs such as XLP and VDC, but the selection and equal weighting strategy gives the fund a different exposure profile.
First Trust Consumer Staples AlphaDEX Fund Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe consumer staples sector is defensive in nature and tends to be less volatile than the broader market, while short-term performance is influenced by the interest rate environment and consumer indicators. Because of its equal weighting structure, performance can diverge from market-cap-weighted ETFs when large-cap stocks lead the market.
Fund flows vary with demand for defensive sectors, and money tends to move into consumer staples during risk-off periods. However, because of the quantitative selection and high turnover structure, flows reflect a combined consideration of costs and tracking characteristics.
First Trust Consumer Staples AlphaDEX Fund Strengths and Weaknesses
Quantitative selection and equal weighted diversification are its strengths, while a management fee and turnover higher than the category average are its weaknesses.
💪 Key Strengths
⚠️ Points to Watch
First Trust Consumer Staples AlphaDEX Fund Alternative ETFs and Related Products
XLP, VDC, and FSTA, shown in the table, are lower-cost core ETFs that build the same consumer staples sector with market-cap weighting, in contrast to this fund's quantitative selection and equal weighting structure. If you prefer an equal weighting approach, RSPS is also a direct comparison, and if you want core exposure to the entire U.S. market, you can consider it alongside a broad-market ETF such as VTI.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLP | State Street Consumer Staples Select Sector SPDR ETF | $89.42 | +1.4% | $14.8B | 0.08% | 2.46% | +16.9% |
 VDC | Vanguard Consumer Staples ETF | $242.32 | +1.4% | $8.0B | 0.09% | 2.01% | +16.0% |
 FSTA | Fidelity MSCI Consumer Staples Index ETF | $56.48 | +1.4% | $1.5B | 0.08% | 2.09% | +15.9% |
 IYK | iShares U.S. Consumer Staples ETF | $78.03 | +1.1% | $1.4B | 0.37% | 2.42% | +16.6% |
 RSPS | Invesco S&P 500 Equal Weight Consumer Staples ETF | $31.53 | +1.4% | $248.1M | 0.40% | 2.81% | +10.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 JBS | JBS NV | 0.05% | $12.49 | +2.7% | $13.4B | 11.7 | 8.14% |
 CASY | Casey's General Stores Inc | 0.05% | $680.19 | +0.4% | $25.1B | 32.8 | 0.38% |
 COKE | Coca-Cola Consolidated Inc | 0.04% | $210.30 | +0.5% | $14.0B | 28.8 | 0.48% |
 SFD | Smithfield Foods Inc | 0.04% | $18.34 | -1.1% | $7.2B | 8.0 | 6.9% |
 INGR | Ingredion Inc | 0.04% | $96.97 | +1.4% | $6.1B | 10.6 | 3.39% |
 DAR | Darling Ingredients Inc | 0.04% | $55.73 | +1.1% | $8.8B | 10.6 | - |
 GIS | General Mills Inc | 0.04% | $34.29 | +2.9% | $18.3B | - | 7.15% |
 MKC | McCormick & Co Inc | 0.04% | $47.29 | +1.1% | $12.7B | 8.6 | 4.1% |
 SEB | Seaboard Corp | 0.04% | $3889.25 | +0.3% | $3.7B | 5.9 | 0.23% |
 FRPT | Freshpet Inc | 0.04% | $67.50 | +2.1% | $3.2B | 17.8 | - |
First Trust Consumer Staples AlphaDEX Fund Investor Checkpoints
Here are the points to review before investing in FXG. It is an ETF that offers defensive exposure to the consumer staples sector, but it is best to thoroughly check its structural characteristics, namely the management fee, turnover, and equal weighted selection strategy, before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Management Fee | Check the impact of cumulative costs over a long holding period | Higher than the category average |
| 🔄 Turnover | Turnover and tax impact from quarterly reselection | On the higher side |
| 📊 Weighting Structure | Check the small and mid-cap allocation resulting from equal weighting | Reduced large-cap concentration |
| 💱 Exchange Rate | Impact on returns converted into won | No currency hedge applied |
Single-sector concentration and high turnover are the main risk factors. When large-cap stocks lead the market, the equal weighting structure can lag market-cap-weighted ETFs, and the cost burden should be considered as well.
It is a suitable choice for investors who want exposure to the consumer staples sector through quantitative selection and equal weighting. If cost is your priority, XLP and VDC are worth considering, and if you want a selection strategy and a diversified structure, FXG is a candidate.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 18, 2026.
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