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

Overview

The First Trust Industrials/Producer Durables AlphaDEXu00ae Fund (FXR) is designed to select industrial and producer durable companies based on growth factors including sales to price, sales growth, and price appreciation. The Fund uses the AlphaDEXu00ae stock selection methodology to select stocks from the S&P Composite 1500u00ae Industrials/Producer Durables Index and is designed to provide investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Industrials Index.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and rules-based investment strategies.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing ETFs and utilizes a quantitative approach to portfolio construction.

Goal

The fund seeks investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Industrials Index.

Investment Approach and Strategy

Strategy: The fund uses the AlphaDEXu00ae methodology, which is a quantitative approach to selecting and weighting stocks based on growth factors.

Composition The ETF primarily holds common stocks of U.S. industrial and producer durable companies.

Market Share: FXR's market share within the industrial ETF sector varies and is influenced by performance, expense ratio, and investor preferences.

Total Net Assets (AUM): 193000000

Key Competitors

• IYJ
• XLI
• VIS

Competitive Landscape

The industrial ETF sector is highly competitive, with several large and well-established funds. FXR differentiates itself with its AlphaDEXu00ae methodology, which aims to outperform traditional market-cap-weighted indices. However, this approach may lead to higher turnover and potential underperformance in certain market environments. Competitors like XLI offer broader exposure with lower expense ratios.

Historical Performance: Historical performance data (annualized returns) should be added here when available. Example: [5.2, 12.3, 8.5, 15.1, 7.8] for 1Y, 3Y, 5Y, 10Y, Inception returns respectively.

Benchmark Comparison: Compare the fund's returns with the NASDAQ AlphaDEXu00ae Industrials Index to assess its tracking effectiveness. (Data Required)

Expense Ratio: 0.62

Average Trading Volume

FXR exhibits moderate liquidity, indicated by its average daily trading volume, facilitating relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread for FXR is typically moderate, reflecting the fund's liquidity and affecting the cost of trading.

Market Environment Factors

FXR's performance is influenced by factors such as economic growth, manufacturing activity, infrastructure spending, and global trade policies.

Growth Trajectory

Growth trends and patterns including strategy and holdings can be added here. (Data Required)

Competitive Edge

FXR's competitive advantage lies in its proprietary AlphaDEXu00ae methodology, which utilizes a rules-based approach to select and weight stocks based on growth factors. This methodology aims to identify companies with strong growth potential and potentially outperform traditional market-cap-weighted indices. The fund's focus on growth factors within the industrial sector differentiates it from broader market ETFs. However, this factor-based approach may not always guarantee outperformance, especially during periods of market volatility or when value stocks are favored.

Volatility

Assess the fund's historical volatility using metrics like standard deviation or beta. (Data Required)

Market Risk

FXR is exposed to market risk, sector-specific risk (industrials), and the risk associated with its AlphaDEXu00ae methodology, which may underperform during certain market conditions.

Ideal Investor Profile

The ideal investor for FXR is one seeking targeted exposure to the U.S. industrial sector with a focus on growth and who understands and accepts the risks associated with a factor-based investment strategy.

Market Risk

FXR may be suitable for long-term investors seeking growth potential within the industrial sector, but it may also appeal to active traders looking to capitalize on short-term market movements.

First Trust Industrials/Producer Durables AlphaDEXu00ae Fund (FXR) provides exposure to the U.S. industrial sector through a unique AlphaDEXu00ae methodology that focuses on growth factors. The fund aims to outperform traditional market-cap-weighted indices, but its performance is subject to market volatility and the effectiveness of its stock selection process. Investors should carefully consider the fund's expense ratio, trading liquidity, and factor-based approach before investing. It is suitable for investors seeking growth within the industrial sector and comfortable with the potential for both outperformance and underperformance compared to broader market benchmarks.

Data Sources:

• First Trust website
• ETFdb.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share data is approximate and may vary based on data sources and calculation methodologies. Consult with a financial advisor before making any investment decisions.