FXL Profile
The First Trust Technology AlphaDEX Fund is designed to provide investors with targeted exposure to the technology sector through an innovative investment strategy. Under normal market conditions, the fund allocates at least 90% of its net assets, including any investment borrowings, into common stocks that constitute the underlying index. This investment approach aims to capture potential growth and performance within the technology sector, known for its rapid innovation and expansion.
The index tracked by the fund is a modified equal-dollar weighted index, specifically tailored to identify and select stocks from the Russell 1000 Index that are within the technology sector. Utilizing the AlphaDEX selection methodology, the index seeks to enhance performance by focusing on stocks that exhibit strong potential for outperformance compared to traditional passive indices. This methodology incorporates a systematic evaluation of various factors, including growth rates, valuation metrics, and momentum indicators, to identify high-potential stocks poised for superior returns.
The AlphaDEX selection process applied in this index employs a quantitative approach to stock selection. By analyzing a range of investment factors, the methodology aims to identify technology stocks that are undervalued or expected to experience significant growth. This dynamic approach contrasts with traditional passive investing by actively seeking opportunities that can generate positive alpha, thus providing investors with a strategic advantage in the technology sector.
Managed by First Trust, the fund leverages the company's expertise in developing advanced investment solutions. The First Trust Technology AlphaDEX Fund offers investors a concentrated exposure to the technology sector, aiming to capitalize on the sector's growth potential while employing a methodology designed to enhance performance. This fund is an appealing option for investors seeking to invest in technology while benefiting from a strategy that targets stocks with the potential for above-average returns.
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