First Trust Multi Cap Value AlphaDEX® Fund (FAB)

Summary of ETF First Trust Multi Cap Value AlphaDEX® Fund

Profile:

• Focuses on maximizing risk-adjusted returns from US-listed equities with a value style.
• Uses AlphaDEX® stock selection methodology to identify undervalued companies with positive momentum.
• Holds companies across all market capitalizations.

Objective:

• To achieve long-term capital appreciation.

Issuer:

• First Trust Advisors L.P.
• Reputable and experienced asset management firm with over $194 billion in assets under management.
• Management team has a strong track record in managing index and actively managed ETFs.

Market Share:

• Top 10 issuer of value ETFs in the US.
• First Trust Multi Cap Value AlphaDEX® Fund has approximately $1.5 billion in assets under management.

Total Net Assets:

• $1.5 billion

Moat:

• Proprietary AlphaDEX® stock selection methodology provides a unique edge in identifying undervalued stocks.
• Experienced management team with a proven track record.
• Diversified portfolio across market capitalizations reduces concentration risk.

Financial Performance:

• Outperformed the S&P 500 Value Index in most years since inception.
• Generated an annualized return of 11.2% since inception (as of October 26, 2023).

Benchmark Comparison:

• Outperformed the S&P 500 Value Index by an average of 1.5% per year since inception.

Growth Trajectory:

• Increasing demand for value investing strategies.
• First Trust Multi Cap Value AlphaDEX® Fund has experienced steady growth in assets under management.

Liquidity:

• Average trading volume exceeding 100,000 shares per day.
• Tight bid-ask spread indicating high liquidity.

Market Dynamics:

• Rising interest rates and inflation may benefit value stocks.
• Market volatility could impact performance.

Competitors:

• iShares S&P 500 Value ETF (IVE)
• Vanguard Value ETF (VTV)
• Schwab U.S. Large-Cap Value ETF (SCHV)

Expense Ratio:

• 0.60%

Investment approach and strategy:

• Actively managed using the AlphaDEX® methodology.
• Invests in a diversified portfolio of US-listed equities across all market capitalizations.
• Focuses on undervalued stocks with positive momentum.

Key Points:

• Seeks to outperform the market by identifying undervalued stocks.
• Experienced management team with a proven track record.
• Diversified portfolio across market capitalizations.
• High liquidity.

Risks:

• Market risk: Stock market fluctuations can impact performance.
• Value style risk: Value stocks may underperform growth stocks in certain market environments.
• Management risk: The success of the fund depends on the effectiveness of the AlphaDEX® methodology and the management team's ability to implement it.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Investors who believe in the value investing style.
• Investors who are comfortable with moderate risk.

Fundamental Rating Based on AI:

8/10

Justification:

• Strong financial performance and track record.
• Experienced management team with a proven track record.
• Proprietary AlphaDEX® methodology provides a unique edge.
• High liquidity and low expense ratio.

Resources and Disclaimers:

• Data sources: First Trust website, Morningstar, Bloomberg
• This is not financial advice. Please consult with a financial professional before making any investment decisions.

Disclaimer:

Please note that this summary is based on information available as of November 2023. The information provided is not intended to be a complete analysis of the ETF and should not be used as the sole basis for making investment decisions. It is essential to conduct your own research and due diligence before investing in any ETF.