First Trust Large Cap Value AlphaDEX® Fund (FTA)FTA

ETF First Trust Large Cap Value AlphaDEX® Fund (FVL)

Profile:

This actively managed ETF invests in large-cap stocks with a value orientation. It selects stocks based on a proprietary quantitative model that considers factors such as size, value, momentum, and quality. The portfolio typically holds around 100 stocks across various sectors, with a focus on sectors such as financials, healthcare, and industrials.

Objective:

The primary objective of FVL is to provide long-term capital appreciation by investing in large-cap value stocks. The fund aims to outperform the Russell 1000 Value Index.

Issuer:

First Trust Advisors L.P. is the issuer of FVL. The company is a leading provider of exchange-traded funds (ETFs) and other investment products.

Reputation and Reliability: First Trust has a strong reputation in the industry, with a long history of managing ETFs and other investment products. The company has received numerous awards and accolades for its products and services.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and value investing.

Market Share: FVL has a market share of approximately 1% in the large-cap value ETF space.

Total Net Assets: As of November 2023, FVL has approximately $1.5 billion in total net assets.

Moat:

• Proprietary quantitative model: FVL's unique stock selection process gives it an edge over other value ETFs.
• Experienced management team: The portfolio managers have a proven track record of success in value investing.
• Focus on large-cap stocks: Large-cap stocks are generally less volatile than small-cap stocks, making FVL a more conservative investment option.

Financial Performance:

FVL has outperformed the Russell 1000 Value Index over the past three and five years. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The value investing style has historically outperformed the market over the long term. However, value stocks can underperform growth stocks in the short term.

Liquidity:

FVL has an average trading volume of over 100,000 shares per day, making it a relatively liquid ETF. The bid-ask spread is typically around 0.1%.

Market Dynamics:

Factors such as economic growth, interest rates, and inflation can impact the performance of value stocks.

Competitors:

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

Expense Ratio:

The expense ratio for FVL is 0.55%.

Investment Approach and Strategy:

• Strategy: Active management based on a proprietary quantitative model.
• Composition: Large-cap value stocks across various sectors.

Key Points:

• Actively managed ETF with a value focus.
• Outperformed the Russell 1000 Value Index over the past three and five years.
• Relatively liquid with low expense ratio.

Risks:

• Market risk: The value of FVL's shares can fluctuate based on market conditions.
• Volatility: Value stocks can be more volatile than growth stocks.
• Specific risks: The fund is concentrated in a limited number of stocks, which could increase its volatility.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Investors who believe that value stocks will outperform the market over the long term.
• Investors who are comfortable with some volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of factors such as financial health, market position, and future prospects, FVL receives a 7 out of 10 rating. The analysis considers the fund's strong track record, experienced management team, and unique investment approach. However, the fund's relatively high expense ratio and concentration risk are factors that could limit its future performance.

Resources:

• First Trust website: https://www.firsttrust.com/etfs/etf-detail.aspx?symbol=FVL
• ETF.com: https://www.etf.com/etf/fvl
• Morningstar: https://www.morningstar.com/etfs/arcx/fvl

Disclaimer:

The information provided in this summary is for informational purposes only and does not constitute financial advice. Investors should always conduct their own research and due diligence before making any investment decisions.