First Trust Technology AlphaDEX Fund (FXL)

Overview

This fund targets savvy investors interested in the technology sector, with a focus on achieving positive alpha—meaning it aims to outperform market averages. By adhering to a strategy of investing at least 90% of its net assets, including any investment borrowings, into securities that make up its benchmark index, this fund offers a disciplined and focused investment approach. The index it follows is a specially modified equal-dollar weighted index, designed not merely to replicate but to scrutinize and select from the Russell 1000® Index. The selection relies on the AlphaDEX® methodology, which is engineered to enhance performance relative to traditional passive index-based strategies. This methodology enables the fund to choose stocks within the technology sector that have the potential to offer higher returns compared to their peers, thereby aiming to provide investors with a growth-oriented investment option.

Products and Services

• Modified Equal-Dollar Weighted Technology Index Investment - This investment focuses on an equal-dollar approach to weightage in the technology sector stocks selected from the Russell 1000® Index. The strategy seeks to distribute investments more evenly across the selected stocks, rather than favoring larger companies by market capitalization, potentially offering a more balanced exposure to the technology sector's growth.
• AlphaDEX® Selection Methodology - The AlphaDEX® selection methodology is a cornerstone of this fund's approach, aiming to identify stocks that may generate positive alpha. This signifies the fund's ambition to outperform the general market through a strategic, algorithm-based selection process that evaluates stocks based on various factors deemed to predict their future performance positively. It’s designed for investors looking for dynamic portfolio strategies that go beyond typical market-cap weighted index investments.