First Trust Financials AlphaDEX Fund (FXO)

Overview

The company operates within the financial services investment sector, focusing on creating investment opportunities that aim to produce positive alpha over traditional passive investment approaches. By committing at least 90% of its net assets, including borrowed investments, to securities within the Russell 1000® Index's financial services sector, it targets a specific market niche. Leveraging the AlphaDEX® selection methodology, the company strives to curate a modified equal-dollar weighted index that identifies and selects stocks with the potential for higher returns.

Products and Services

• Russell 1000® Financial Services Sector Investments

  These investments are selected to offer exposure to the financial services sector of the Russell 1000® Index. By focusing on this sector, the fund aims to capitalize on the performance of financial companies within a broad and diverse market segment.

• AlphaDEX® Selection Methodology

  This methodology underpins the company’s strategy to outperform traditional passive investment indices. It involves an objective process of selecting stocks that have the potential to generate positive alpha, or excess returns over a benchmark, through a modified equal-dollar weighting system, which aims to balance the portfolio across various assets to achieve higher performance.