FXH

📎 Investment Objective

The First Trust Health Care AlphaDEX Fund (FXH) seeks to provide investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an index called the StrataQuant Health Care Index.

✨ Key Features

• Focuses on healthcare sector stocks, which can provide exposure to a defensive industry with potential for growth
• Utilizes a quantitative stock selection process to identify companies with growth potential
• Diversified across healthcare sub-sectors like pharmaceuticals, biotechnology, medical devices, and healthcare providers
• Relatively low expense ratio compared to many actively managed healthcare funds

⚠️ Primary Risks

• Sector risk - As a healthcare-focused fund, it is subject to risks specific to that industry, such as regulatory changes, patent expirations, and pricing pressures
• Stock selection risk - The 'AlphaDEX' methodology may not always successfully identify the best performing healthcare stocks
• Concentration risk - The fund is concentrated in the healthcare sector, which could lead to higher volatility than a more diversified fund
• Liquidity risk - As a relatively small fund, it may have less trading volume and liquidity than larger ETFs

👤 Best For

This ETF may be suitable for investors seeking exposure to the healthcare sector as part of a diversified portfolio. It could be appropriate for investors with a medium to long-term time horizon who are comfortable with the risks associated with investing in the healthcare industry.