First Trust Large Cap Core AlphaDEX® Fund (FEX)

Overview

The First Trust Large Cap Core AlphaDEXu00ae Fund (FV) seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the NASDAQ AlphaDEXu00ae Large Cap Core Index. The fund uses the AlphaDEXu00ae stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and strategic investment solutions.

Management Expertise

First Trust has a strong management team with experience in developing and managing a variety of ETFs.

Goal

Seeks investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Large Cap Core Index.

Investment Approach and Strategy

Strategy: The fund employs a smart beta strategy by selecting and weighting stocks based on growth factors, and value factors.

Composition Primarily holds U.S. large-cap stocks selected using the AlphaDEXu00ae methodology, designed to identify stocks with superior growth potential.

Market Share: FVu2019s market share is relatively small compared to the broad large-cap ETF market.

Total Net Assets (AUM): 2017000000

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Competitive Landscape

The ETF market is dominated by a few very large, passively managed ETFs. FV's smart beta approach offers a different exposure than market-cap weighted ETFs. Its relative value-focused strategy could lead to outperformance during certain market cycles, but is less common than core index approaches.

Historical Performance: Historical performance can be found on financial websites. Performance varies based on market conditions.

Benchmark Comparison: FV aims to outperform its index. Success depends on the effectiveness of the AlphaDEXu00ae methodology.

Expense Ratio: 0.06

Average Trading Volume

The fund exhibits a moderate average trading volume, which could impact ease of entry and exit for larger positions.

Bid-Ask Spread

The bid-ask spread is generally tight, implying relatively low transaction costs under normal market conditions.

Market Environment Factors

Economic growth, interest rates, and inflation can affect FV's performance. Sector preferences can also influence returns.

Growth Trajectory

FV's growth depends on the popularity of smart beta strategies and its ability to deliver superior risk-adjusted returns. Future strategy updates may occur.

Competitive Edge

First Trust's AlphaDEXu00ae methodology offers a distinct smart beta approach by prioritizing value factors. This methodology differs from traditional market-cap weighting, giving it a niche offering. This approach may benefit investors seeking to outperform market-cap-weighted indices over the long term. However, this value tilt can sometimes underperform the broader market during growth-oriented periods, adding complexity to its performance profile.

Volatility

FV's volatility is expected to be similar to the large-cap market, but the factor exposures add unique tracking risk.

Market Risk

The fund is subject to market risk, as its value fluctuates with the overall stock market. Sector and stock-specific risks are also present due to the selected holdings.

Ideal Investor Profile

FV is suitable for investors seeking to outperform the broad market through a smart beta strategy focused on value and growth factors.

Market Risk

FV is suited for long-term investors who understand smart beta strategies and can tolerate potential periods of underperformance relative to market-cap-weighted indices.

First Trust Large Cap Core AlphaDEXu00ae Fund offers a smart beta approach to large-cap investing by using the AlphaDEXu00ae methodology for stock selection. It targets superior risk-adjusted returns through factor-based investing but comes with the possibility of increased tracking error versus the S&P 500 index. Its relatively low expense ratio can be appealing to cost-conscious investors seeking alpha. The fund is best suited for long-term investors with a solid understanding of factor investing, ready to accept moderate volatility and potentially cyclical performance influenced by its value and growth tilt.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.