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

Overview

The First Trust Industrials/Producer Durables AlphaDEXu00ae Fund (FXR) is an exchange-traded fund that seeks investment results that correspond generally to the price and yield of an equity index called the StrataQuantu00ae Industrials Index. It focuses on companies in the industrials and producer durables sectors, employing the AlphaDEXu00ae methodology to select stocks based on growth and value factors.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovative investment strategies and reliable fund management.

Management Expertise

First Trust Advisors L.P. has a team of experienced portfolio managers and analysts with expertise in quantitative investing and sector-specific analysis.

Goal

To provide investment results that correspond generally to the price and yield of the StrataQuantu00ae Industrials Index.

Investment Approach and Strategy

Strategy: The fund employs the AlphaDEXu00ae methodology, which ranks stocks based on growth factors (e.g., sales growth, price appreciation) and value factors (e.g., book value to price, cash flow to price). Stocks with the highest ranks are selected and weighted accordingly.

Composition The ETF holds a diversified portfolio of common stocks of companies in the industrials and producer durables sectors.

Market Share: FXR holds a moderate market share within the industrial sector ETF market.

Total Net Assets (AUM): 129000000

Key Competitors

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

Competitive Landscape

The industrial sector ETF market is highly competitive, dominated by larger, more established funds like XLI and VIS. FXR differentiates itself through its AlphaDEXu00ae methodology, which aims to identify undervalued growth stocks. However, this strategy may not always outperform traditional market-cap-weighted indices, and it comes with a higher expense ratio compared to some competitors.

Historical Performance: Historical performance data should be obtained from reliable financial sources. Past performance is not indicative of future results.

Benchmark Comparison: Compare FXR's performance to the StrataQuantu00ae Industrials Index to evaluate its tracking effectiveness.

Expense Ratio: 0.62

Average Trading Volume

The average trading volume for FXR is moderate, which may impact the ease of buying and selling large quantities of shares.

Bid-Ask Spread

The bid-ask spread for FXR is typically reasonable, but can widen during periods of market volatility.

Market Environment Factors

FXR's performance is influenced by economic growth, interest rates, inflation, supply chain dynamics, and government policies affecting the industrial sector.

Growth Trajectory

FXR's growth depends on the continued popularity of its AlphaDEXu00ae methodology and its ability to generate competitive returns within the industrial sector. Changes to the underlying index methodology or portfolio holdings could impact its performance.

Competitive Edge

FXR's competitive advantage lies in its unique AlphaDEXu00ae methodology, which seeks to identify undervalued growth stocks within the industrials sector. This approach may appeal to investors seeking to outperform traditional market-cap-weighted indices. The active management style differentiates it from passive industrial sector ETFs. However, the higher expense ratio might be a disadvantage compared to passively managed ETFs.

Volatility

FXR's volatility is generally comparable to other industrial sector ETFs, but may be higher due to its active management strategy.

Market Risk

FXR is subject to market risk, including economic downturns, industry-specific risks, and geopolitical events that can impact the performance of the industrial sector.

Ideal Investor Profile

The ideal investor for FXR is someone seeking exposure to the industrials sector with a preference for a quantitative, actively managed approach. They should be comfortable with a higher expense ratio in exchange for the potential for outperformance.

Market Risk

FXR may be suitable for both long-term investors and active traders seeking to capitalize on short-term trends in the industrial sector, though the expense ratio should be carefully considered for long-term holdings.

First Trust Industrials/Producer Durables AlphaDEXu00ae Fund (FXR) offers exposure to the industrials sector through a unique AlphaDEXu00ae methodology that seeks undervalued growth stocks. It differentiates itself with active management, potentially leading to outperformance but also higher volatility and expenses. The ETF's performance is closely tied to economic conditions and industry-specific factors impacting industrial companies. Investors should carefully consider their risk tolerance and investment goals before investing, weighing the potential benefits of active management against the higher cost.

Data Sources:

• First Trust Website
• ETF.com
• Bloomberg
• 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. Consult with a financial advisor before making any investment decisions.