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

First Trust Large Cap Value AlphaDEX Fund (FTA) Financial Services Profile

First Trust Large Cap Value AlphaDEX Fund (FTA) offers investors access to a portfolio of large-cap value stocks through its ETF structure. Tracking the Nasdaq AlphaDEX Large Cap Value Index, FTA employs a proprietary methodology for stock selection and weighting, differentiating it from traditional market-cap weighted value funds within the asset management sector.

What Is the Investment Thesis for FTA?

Unlike traditional value funds, FTA utilizes the AlphaDEX methodology, which focuses on growth and value factors to identify companies with potential for outperformance. With a market capitalization of $1.29 billion, FTA offers exposure to a diversified portfolio of large-cap value stocks. The fund's potential for growth lies in its ability to capture undervalued companies with strong growth characteristics. However, investors may want to evaluate the fund's beta of 0.82, indicating lower volatility compared to the broader market. The absence of a dividend yield may deter income-seeking investors. The fund's success is tied to the continued effectiveness of the AlphaDEX methodology in identifying and weighting stocks.

Based on FMP financials and quantitative analysis

FTA Key Highlights

FTA's market cap is $1.29 billion, reflecting its significant presence in the large-cap value segment.

• The fund's beta of 0.82 suggests lower volatility compared to the overall market, potentially appealing to risk-averse investors.
• FTA tracks the Nasdaq AlphaDEX Large Cap Value Index, employing a unique methodology that blends growth and value factors.
• The fund offers diversified exposure to large-cap U.S. value stocks, reducing concentration risk.
• FTA's expense ratio is not provided, but expense ratios are a key consideration for ETF investors.

Who Are FTA's Competitors?

FTA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FTA's Key Strengths?

Unique AlphaDEX methodology for stock selection.

• Diversified exposure to large-cap value stocks.
• Relatively low beta compared to the broader market.
• Transparent ETF structure with daily liquidity.

What Are FTA's Weaknesses?

Reliance on the effectiveness of the AlphaDEX methodology.

• Absence of a dividend yield may deter income-seeking investors.
• Potential for tracking error compared to the benchmark index.
• Competition from other value ETFs with lower expense ratios.

What Are the Key Risks for FTA?

Underperformance of the AlphaDEX methodology compared to traditional value strategies.

• Increased competition from other ETF providers.
• Market volatility and economic downturns.
• Changes in investor sentiment towards value stocks.

What Threats Does FTA Face?

• Changes in market conditions that favor growth stocks over value stocks.
• Increased competition from new ETF providers.
• Regulatory changes that impact the ETF industry.
• Economic downturn that reduces investor risk appetite.

What Are FTA's Competitive Advantages?

• Proprietary AlphaDEX methodology provides a differentiated approach to value investing.
• Established track record of tracking the Nasdaq AlphaDEX Large Cap Value Index.
• Brand recognition and distribution network of First Trust Advisors L.P.

What Does FTA Do?

The First Trust Large Cap Value AlphaDEX Fund (FTA) is an exchange-traded fund (ETF) managed by First Trust Advisors L.P. The fund's primary objective is to replicate, before fees and expenses, the price and yield performance of the Nasdaq AlphaDEX Large Cap Value Index. This index employs a unique methodology that selects and weights stocks based on growth factors including sales growth, price appreciation, and momentum, as well as value factors such as book value to price, cash flow to price, and return on assets. Unlike traditional market-cap weighted indexes, the AlphaDEX methodology seeks to identify companies with the potential for superior risk-adjusted returns. The fund provides investors with exposure to a diversified portfolio of large-cap U.S. value stocks. FTA was designed for investors seeking a potentially enhanced approach to value investing, moving beyond conventional market capitalization weighting schemes. The fund's holdings are rebalanced and reconstituted periodically to maintain alignment with the index methodology. The fund is based in Wheaton, Illinois.

What Products and Services Does FTA Offer?

• Offers an exchange-traded fund (ETF) focused on large-cap value stocks.
• Tracks the Nasdaq AlphaDEX Large Cap Value Index.
• Utilizes a proprietary AlphaDEX methodology for stock selection and weighting.
• Provides investors with diversified exposure to U.S. large-cap value equities.
• Rebalances and reconstitutes its holdings periodically to maintain alignment with the index.
• Aims to deliver investment results that correspond to the price and yield of its benchmark index.

How Does FTA Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• AUM fluctuates based on market performance and investor flows.
• The fund's profitability depends on its ability to attract and retain assets.

What Industry Does FTA Operate In?

The asset management industry is characterized by intense competition and evolving investment strategies. ETFs like FTA have gained popularity due to their diversification, transparency, and cost-effectiveness. The large-cap value segment is a significant portion of the market, attracting investors seeking stable returns and lower volatility. FTA differentiates itself through its AlphaDEX methodology, which aims to outperform traditional market-cap weighted value funds. The industry is influenced by factors such as market trends, interest rates, and regulatory changes.

Who Are FTA's Key Customers?

• Retail investors seeking diversified exposure to large-cap value stocks.
• Financial advisors using ETFs as part of client portfolios.
• Institutional investors looking for efficient access to the U.S. equity market.

FTA Financials

FTA Latest News

FTA Analyst Consensus

FTA MoonshotScore

What Investors Ask About First Trust Large Cap Value AlphaDEX Fund (FTA) — Financials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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