First Trust US Large Cap Core AlphaDEX UCITS ETF

Issuer: First Trust

Asset Class: Equity

TER: 65bps

Trading Currency: GBX

Pays Income: False

Listing Date: 11 Apr 2013

Ticker: FEX

ISIN: IE00B8X9NW27

This investment product offers a strategic approach to the US large-cap equity market by utilizing a proprietary, rules-based methodology designed to identify stocks with the potential for outperformance. Diverging from traditional market-capitalization-weighted strategies, it employs the AlphaDEX selection process, which systematically ranks securities based on a combination of growth and value factors. This quantitative framework aims to construct a portfolio of fundamentally strong companies, rather than simply investing in the largest ones, thereby seeking to generate alpha over a standard benchmark.

The underlying index begins with a broad universe of US large-cap stocks. These companies are then rigorously evaluated and scored on specific growth criteria, such as recent price appreciation and sales growth, alongside value metrics like book-value-to-price and cash-flow-to-price. Only the highest-ranking stocks from this multi-factor screening process are selected for inclusion. The portfolio undergoes regular reconstitution and rebalancing, typically on a quarterly basis, to ensure it remains aligned with its factor objectives and adapts to evolving market dynamics.

This fund is tailored for investors looking to enhance their core US equity exposure with a disciplined, factor-based investment strategy. By focusing on stocks exhibiting favorable growth and value characteristics, it provides a potential avenue for improved risk-adjusted returns compared to passive, market-cap-only approaches. It is suitable for those who believe that fundamental factors can drive long-term performance and prefer a systematic, non-emotional method for capturing these opportunities within the American stock market.