FXO
First Trust Financials AlphaDEX Fund
📎 Investment Objective
The First Trust Financials AlphaDEX Fund (FXO) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the StrataQuant Financials Index.
Overview
ETF tracking First Trust Financials AlphaDEX Fund
Performance
Price Chart
Investment Summary
📎 Investment Objective
The First Trust Financials AlphaDEX Fund (FXO) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the StrataQuant Financials Index.
🎯 Investment Strategy
The fund employs an 'AlphaDEX' stock selection methodology to identify financial sector stocks that the fund's advisor believes have the greatest potential for capital appreciation. The fund's portfolio is rebalanced and reconstituted on a quarterly basis.
✨ Key Features
- Focuses on the financial sector, which includes banks, insurance companies, and other financial services firms
- Uses a quantitative stock selection process to identify potentially undervalued companies
- Diversified portfolio of 100-200 financial stocks
- Quarterly rebalancing and reconstitution of the portfolio
⚠️ Primary Risks
- Sector risk: As a sector-specific fund, FXO is subject to greater volatility and risk than a more diversified fund
- Stock selection risk: The fund's quantitative stock selection process may not always identify the best-performing stocks
- Liquidity risk: Some of the fund's holdings may have limited trading volume, which could impact the fund's ability to buy or sell shares
- Market risk: The value of the fund's holdings may decline due to general market conditions or other factors
👤 Best For
FXO may be suitable for investors seeking exposure to the financial sector as part of a diversified portfolio. The fund's focus on potentially undervalued stocks may appeal to investors with a medium to long-term investment horizon and a higher risk tolerance.