First Trust Industrials/Producer Durables AlphaDEX® Fund (FXR)

Overview

The First Trust Industrials/Producer Durables AlphaDEXu00ae Fund (FXR) is an ETF that seeks investment results that correspond generally to the price and yield of an equity index called the StrataQuantu00ae Industrials Index. The fund focuses on the industrials sector, employing an enhanced indexing strategy to select stocks based on growth factors including sales, price appreciation, and other qualitative data, aiming for capital appreciation.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation in the market.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing various ETFs, including sector-specific funds.

Goal

The fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the StrataQuantu00ae Industrials Index.

Investment Approach and Strategy

Strategy: The fund utilizes an 'enhanced indexing' strategy, where it selects stocks within the industrials sector based on growth and value factors. The AlphaDEXu00ae methodology aims to outperform traditional market-cap weighted indexes.

Composition The ETF primarily holds stocks within the industrials sector, including companies involved in aerospace and defense, machinery, construction materials, and transportation.

Market Share: FXR holds a relatively small market share within the broader industrials ETF space.

Total Net Assets (AUM): 480000000

Key Competitors

• Industrial Select Sector SPDR Fund (XLI)
• Vanguard Industrials ETF (VIS)
• iShares U.S. Industrials ETF (IYJ)

Competitive Landscape

The industrials ETF market is dominated by larger, market-cap weighted funds like XLI and VIS. FXR distinguishes itself through its AlphaDEXu00ae methodology, aiming to provide potentially higher returns, but this also leads to higher risk. FXR's advantage lies in its potentially superior stock selection, but it faces the disadvantage of a smaller AUM and potentially higher volatility compared to its larger peers.

Historical Performance: Historical performance data unavailable in this format. Refer to financial websites for performance figures.

Benchmark Comparison: Benchmark comparison data unavailable in this format. Refer to financial websites for performance figures.

Expense Ratio: 0.63

Average Trading Volume

The average trading volume of FXR suggests moderate liquidity, which is typical for a sector ETF of its size.

Bid-Ask Spread

The bid-ask spread for FXR is generally reasonable, indicating relatively low transaction costs for investors.

Market Environment Factors

FXR's performance is significantly influenced by economic cycles, industrial production levels, and government spending on infrastructure and defense.

Growth Trajectory

FXR's growth depends on the fund's ability to outperform its benchmark using the AlphaDEXu00ae methodology and attract investors seeking higher returns within the industrials sector. Holdings and strategy undergo periodic adjustments based on the AlphaDEXu00ae screening process.

Competitive Edge

FXR's primary competitive advantage lies in its AlphaDEXu00ae methodology, which seeks to identify and overweight stocks with the strongest growth potential within the industrials sector. This strategy differentiates it from traditional market-cap weighted ETFs. The fund's focus on fundamentally sound companies enhances its appeal to investors seeking value. This distinctive approach may result in enhanced returns compared to peers over the long term.

Volatility

FXR's volatility may be higher than broad-market industrial ETFs due to its selection methodology.

Market Risk

FXR is exposed to the general risks associated with the industrials sector, including economic slowdowns, cyclical demand, and commodity price fluctuations.

Ideal Investor Profile

FXR is suitable for investors who are bullish on the industrials sector and seek potentially higher returns through active stock selection, accepting a higher level of risk.

Market Risk

FXR is best suited for investors with a moderate to high risk tolerance who are looking for capital appreciation within the industrials sector and are willing to hold the ETF for the long term.

The First Trust Industrials/Producer Durables AlphaDEXu00ae Fund (FXR) is an ETF that targets the industrials sector using the AlphaDEXu00ae methodology to select stocks based on growth and value factors. It aims to outperform market-cap weighted indexes, but it carries higher volatility. The fund is suited for investors with a higher risk tolerance seeking capital appreciation in the industrial sector. While its market share is modest compared to industry giants like XLI and VIS, FXR offers a differentiated approach to industrial sector investing.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share data is based on publicly available information and may not be fully comprehensive. Performance data unavailable.