First Trust Consumer Staples AlphaDEX® Fund (FXG)

Overview

The First Trust Consumer Staples AlphaDEXu00ae Fund (FXG) seeks investment results that correspond to the price and yield, before fees and expenses, of the StrataQuantu00ae Consumer Staples Index. The index uses a quantitative methodology to select and weight consumer staples stocks.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and providing diverse investment solutions.

Management Expertise

First Trust has a dedicated team of portfolio managers and analysts with expertise in quantitative investment strategies and ETF management.

Goal

The fund aims to provide investment results that correspond to the price and yield, before fees and expenses, of the StrataQuantu00ae Consumer Staples Index.

Investment Approach and Strategy

Strategy: FXG employs a quantitative, rules-based strategy to select and weight consumer staples stocks based on growth and value factors.

Composition The ETF primarily holds stocks of U.S. consumer staples companies.

Market Share: FXG has a moderate market share within the consumer staples ETF category.

Total Net Assets (AUM): 168.78

Key Competitors

• Consumer Staples Select Sector SPDRu00ae Fund (XLP)
• Vanguard Consumer Staples ETF (VDC)
• iShares U.S. Consumer Staples ETF (IYK)

Competitive Landscape

The consumer staples ETF market is dominated by a few large players, with XLP and VDC holding significant market share. FXG differentiates itself through its AlphaDEXu00ae methodology, offering potential for outperformance compared to traditional market-cap-weighted ETFs. However, this active approach may also introduce higher volatility and expense ratios.

Historical Performance: Historical performance data is not included here but can be found on financial websites. Note that past performance is not indicative of future results.

Benchmark Comparison: Comparison against the StrataQuantu00ae Consumer Staples Index is essential to assess the ETF's tracking effectiveness. Historical performance data is needed to benchmark the performance.

Expense Ratio: 0.63

Average Trading Volume

FXG has a moderate average daily trading volume, reflecting sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for FXG is typically competitive, indicating reasonable trading costs.

Market Environment Factors

Economic conditions, consumer spending habits, inflation, and interest rates influence the performance of consumer staples companies held by FXG.

Growth Trajectory

The ETF's growth is tied to the performance of its underlying consumer staples holdings and the effectiveness of its AlphaDEXu00ae methodology in selecting outperformers.

Competitive Edge

FXG's primary advantage lies in its AlphaDEXu00ae methodology, which aims to identify and overweight stocks with superior growth and value characteristics within the consumer staples sector. This quantitative approach seeks to outperform traditional market-cap-weighted indices. The selection process is designed to capture companies with strong fundamentals and potential for price appreciation. However, the effectiveness of this strategy depends on the model's ability to consistently identify outperformers and could be subject to increased volatility compared to traditional, passive strategies.

Volatility

FXG may exhibit moderate volatility, influenced by market fluctuations and the fund's active selection process.

Market Risk

FXG is exposed to market risk affecting the consumer staples sector, including changes in consumer preferences, economic downturns, and regulatory developments.

Ideal Investor Profile

FXG is suitable for investors seeking targeted exposure to the consumer staples sector with a preference for a quantitatively driven, potentially outperforming strategy.

Market Risk

FXG is appropriate for long-term investors willing to accept moderate volatility in pursuit of potentially higher returns than passive index tracking.

The First Trust Consumer Staples AlphaDEXu00ae Fund (FXG) provides access to the consumer staples sector through a quantitative AlphaDEXu00ae selection methodology. It aims to outperform traditional market-cap-weighted indices by identifying and overweighting companies with superior growth and value characteristics. While offering potential for higher returns, FXG also carries higher expense ratio and volatility. It's suitable for long-term investors seeking sector-specific exposure with an active approach to investing.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results.