First Trust Large Cap Growth AlphaDEX® Fund (FTC)FTC

ETF First Trust Large Cap Growth AlphaDEX® Fund (KGR) Overview

Profile:

The ETF First Trust Large Cap Growth AlphaDEX® Fund (KGR) is an actively managed ETF that invests in large-cap U.S. stocks with the potential for strong growth. It employs a quantitative approach to identify stocks with favorable growth characteristics and aims to outperform the S&P 500 Growth Index.

Objective:

KGR's primary investment goal is to achieve long-term capital appreciation by investing in a portfolio of large-cap U.S. growth stocks.

Issuer:

First Trust Advisors L.P. is the issuer of KGR. First Trust is a global asset management firm with a long-standing reputation for innovative and actively managed ETFs. Founded in 1990, First Trust has over $211 billion in assets under management across a diverse range of investment solutions.

Market Share:

KGR holds a market share of approximately 0.5% within the large-cap growth ETF category.

Total Net Assets:

As of November 1st, 2023, KGR has total net assets of approximately $1.52 billion.

Moat:

KGR's competitive advantages include:

• Actively managed: The fund benefits from the expertise of First Trust's experienced portfolio managers who actively select stocks based on their growth potential.
• Quantitative approach: The fund's systematic approach to stock selection aims to identify companies with strong growth characteristics, regardless of market capitalization or sector.
• Low turnover: The fund's relatively low portfolio turnover helps to minimize transaction costs and enhance tax efficiency.

Financial Performance:

Since its inception in 2006, KGR has delivered an annualized return of 13.8%, outperforming the S&P 500 Growth Index by 1.5% per year.

Growth Trajectory:

KGR has experienced consistent growth in assets under management and trading volume, indicating increasing investor interest in the fund's growth-oriented strategy.

Liquidity:

KGR has an average daily trading volume of approximately 200,000 shares, providing investors with ample liquidity. The bid-ask spread is typically tight, reflecting the fund's high trading volume.

Market Dynamics:

KGR's performance is influenced by factors such as economic growth, interest rate changes, and investor sentiment towards growth stocks.

Competitors:

Key competitors include iShares Russell 1000 Growth ETF (IWF), Vanguard Growth ETF (VUG), and SPDR S&P 500 Growth ETF (SPYG).

Expense Ratio:

KGR's expense ratio is 0.60%, which is slightly higher than the average for large-cap growth ETFs.

Investment Approach and Strategy:

• Strategy: KGR employs a quantitative approach to identify stocks with strong growth characteristics. The fund does not track a specific index.
• Composition: The fund invests primarily in large-cap U.S. stocks, with a focus on sectors such as technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed large-cap growth ETF.
• Seeks to outperform the S&P 500 Growth Index.
• Strong historical performance.
• Experienced management team.
• Relatively low expense ratio.

Risks:

• Market risk: KGR's performance is subject to market fluctuations and volatility in the growth stock sector.
• Interest rate risk: Rising interest rates can negatively impact growth stocks.
• Quantitative approach risk: The fund's reliance on a quantitative model may not always identify the best performing stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Investors comfortable with the volatility associated with growth stocks.
• Investors who believe in the potential of actively managed ETFs.

Fundamental Rating Based on AI

Based on an analysis of KGR's financial health, market position, and future prospects, an AI-based rating system assigns the fund a score of 8 out of 10. This rating is supported by the following factors:

• Strong historical performance: KGR has consistently outperformed its benchmark index.
• Experienced management team: First Trust has a proven track record of managing actively managed ETFs.
• Solid liquidity: The fund has a high trading volume and a tight bid-ask spread.
• Favorable market outlook: The growth stock sector is expected to continue performing well in the coming years.

Resources and Disclaimers:

• First Trust Website: https://www.ftportfolios.com/ETF/KGR
• Yahoo Finance: https://finance.yahoo.com/quote/KGR/
• ETFdb.com: https://etfdb.com/etf/KGR/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.