First Trust Large Cap Value AlphaDEX Fund (02FA)

Overview

The fund is designed to strategically invest in large-cap value stocks within the NASDAQ US 500 Large Cap Index™ by employing the AlphaDEX® selection methodology. This aims to generate positive alpha, or risk-adjusted returns, compared to traditional indices, by primarily focusing investment activities on stocks that are deemed to offer value. The commitment to invest at least 90% of its net assets (including investment borrowings) into the securities that form part of the index underscores the fund's targeted approach towards value investing within the large-cap domain. This strategy is particularly tailored for investors looking for exposure to large-cap value stocks with the potential for enhanced risk-adjusted returns.

Products and Services

• NASDAQ US 500 Large Cap Index Investments

  The core of the fund's investment strategy is to allocate at least 90% of its net assets in securities that are part of the NASDAQ US 500 Large Cap Index™. This commitment ensures that investors are primarily exposed to large-cap stocks that have the potential to offer stable returns and are considered to be less volatile compared to smaller-cap stocks.

• AlphaDEX® Selection Methodology

  Utilizing the AlphaDEX® selection methodology allows the fund to identify value stocks within the base index that may generate positive alpha or risk-adjusted returns. This systematic and analytical approach to stock selection differentiates the fund from traditional investment methodologies by focusing on potential outperformers in the value segment of the market.