FXH Profile
The First Trust Health Care AlphaDEX Fund is structured to offer investors targeted exposure to the health care sector through a sophisticated investment strategy. Under normal market conditions, the fund invests at least 90% of its net assets, including any investment borrowings, in common stocks that make up the underlying index. This allocation strategy is aimed at capturing potential growth and performance within the health care sector, an industry characterized by its innovative advancements and essential services.
The underlying index utilized by the fund is a modified equal-dollar weighted index designed to identify and select stocks from the Russell 1000 Index within the health care sector. This index employs the AlphaDEX selection methodology, a rules-based approach that seeks to enhance performance by focusing on stocks with strong potential for outperformance relative to traditional passive indices. The methodology integrates multiple factors, including growth metrics, valuation assessments, and momentum indicators, to identify stocks that are likely to generate positive alpha and deliver superior returns.
The AlphaDEX methodology applied in the index aims to dynamically capture opportunities within the health care sector by systematically screening and ranking stocks based on quantitative criteria. This approach helps to identify high-potential stocks that may be undervalued or poised for growth, providing a proactive alternative to static index investing. By incorporating these factors, the fund targets stocks with the potential to outperform traditional benchmarks, thus offering investors a strategic edge in the health care sector.
Managed by First Trust, the fund benefits from the company's expertise in developing innovative investment solutions. The First Trust Health Care AlphaDEX Fund is designed for investors seeking to gain focused exposure to the health care sector while leveraging a methodology that aims to enhance performance. The fund provides a concentrated approach to investing in an industry known for its growth potential and cyclical trends, making it an attractive option for those looking to capitalize on sector-specific opportunities and diversify their investment portfolios.
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