First Trust Large Cap Growth AlphaDEX® Fund (FTC)

Overview

The First Trust Large Cap Growth AlphaDEXu00ae Fund (FTC) is an ETF that seeks investment results that correspond generally to the price and yield of an equity index called the NASDAQ AlphaDEXu00ae Large Cap Growth Index. It utilizes a proprietary methodology to select and weight growth stocks within the large-cap universe.

Reputation and Reliability

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

Management Expertise

First Trust Advisors L.P. has a strong track record in managing ETFs and employing quantitative investment approaches.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Large Cap Growth Index.

Investment Approach and Strategy

Strategy: The fund employs a 'smart beta' strategy by selecting and weighting stocks based on growth factors using the AlphaDEXu00ae methodology. It does not passively track a market-cap weighted index.

Composition The fund holds a portfolio of large-cap U.S. growth stocks selected and weighted based on factors such as sales growth, price appreciation, and momentum.

Market Share: Data not available.

Total Net Assets (AUM): 1620000000

Key Competitors

• IVW
• VUG
• SCHG
• MGK

Competitive Landscape

The large-cap growth ETF market is highly competitive, with several well-established funds offering various strategies. FTC differentiates itself with its AlphaDEXu00ae methodology, which aims to outperform traditional market-cap weighted indexes. However, this active approach may result in higher expenses compared to passively managed ETFs. Competitors like IVW, VUG, and SCHG have lower expense ratios and larger AUM. The market share data reported is based on the market cap/total market cap of these competitors.

Historical Performance: Historical performance data is not available in the output. Refer to financial websites for this information.

Benchmark Comparison: Benchmark comparison data is not available in the output. Refer to financial websites for this information.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume of FTC indicates moderate liquidity, allowing investors to buy and sell shares efficiently.

Bid-Ask Spread

The bid-ask spread of FTC is typically tight, reflecting reasonable trading costs for investors.

Market Environment Factors

Economic growth, interest rate policies, and sector-specific trends can influence the performance of FTC. Investors should watch for tech sector and consumer discretionary sector performance as these make up some of the largest ETF holdings.

Growth Trajectory

The growth trajectory of FTC depends on the success of its AlphaDEXu00ae methodology in selecting and weighting growth stocks, as well as overall market conditions. The fund's strategy and holdings could change based on the index methodology.

Competitive Edge

FTC's competitive advantage lies in its proprietary AlphaDEXu00ae methodology, which aims to identify and weight growth stocks based on a quantitative approach. This strategy provides a distinct approach compared to passive market-cap weighted ETFs. The fund focuses on selecting stocks that exhibit strong growth characteristics, potentially leading to higher returns. However, it comes with increased risk and higher expense ratio than traditional index funds. The fund's weighting process differentiates it further from competitors using different weighting schemes.

Volatility

FTC may exhibit higher volatility than broad market ETFs due to its focus on growth stocks and active selection process.

Market Risk

The fund is subject to market risk, which includes the potential for losses due to overall market declines or underperformance of its selected stocks.

Ideal Investor Profile

The ideal investor for FTC is one who seeks growth potential within the large-cap market and is comfortable with an actively managed ETF and its associated higher expense ratio.

Market Risk

FTC is suitable for long-term investors who are seeking growth and are willing to accept moderate to high volatility.

The First Trust Large Cap Growth AlphaDEXu00ae Fund (FTC) offers exposure to large-cap growth stocks through a proprietary AlphaDEXu00ae methodology. This approach aims to outperform traditional market-cap weighted indexes by selecting and weighting stocks based on growth factors. While this active strategy may offer higher growth potential, it also comes with a higher expense ratio and potentially greater volatility. FTC may be suitable for investors seeking growth and are comfortable with some exposure to risk. Investors should carefully consider their investment objectives and risk tolerance before investing.

Data Sources:

• First Trust website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.