The First Trust Mid Cap Core AlphaDEX Fund (FNX) is managed by First Trust Advisors L.P. Established with the goal of delivering returns that outperform traditional indices, FNX focuses on mid-cap U.S. stocks. The fund typically invests at least 90% of its net assets in the common stocks that make up its underlying index, which is developed and maintained by Nasdaq, Inc., known as the Index Provider. This index, the Nasdaq US 600 Mid Cap Index, employs the AlphaDEX® selection methodology to identify stocks that have the potential to generate positive alpha or risk-adjusted returns. FNX's investment strategy involves periodic rebalancing to align with changes in the index, potentially leading to a higher rate of portfolio turnover. As of October 31, 2022, the index consisted of 451 securities within a market capitalization range of $2.099 billion to $28.146 billion, providing investors with exposure to mid-cap companies in the U.S. equity market. Please note that FNX may be concentrated in specific industries or sectors based on the composition of its underlying index.
The First Trust Mid Cap Core AlphaDEX Fund (FNX) follows an investment strategy primarily focused on replicating the performance of the Nasdaq US 600 Mid Cap IndexTM. While dividend income is not the primary objective of this ETF, it is subject to the dividend distributions of the underlying index constituents. Dividends from FNX are typically influenced by the individual dividend policies and performances of the mid-cap U.S. companies included in the index. Investors interested in FNX may appreciate its potential for capital appreciation, as it aims to select stocks that may generate positive alpha, or risk-adjusted returns, relative to traditional indices through the use of the AlphaDEX® selection methodology. However, it's important to note that the ETF's dividend eligibility and distribution frequency are determined by the dividend policies and practices of the companies within the Nasdaq US 600 Mid Cap IndexTM, which the ETF seeks to replicate.
FNX (First Trust Mid Cap Core AlphaDEX Fund) pursues its investment objectives by tracking the performance of the Defined Mid Cap Core Index. FNX's strategy involves holding a portfolio of mid-cap U.S. stocks, selected and weighted based on various investment factors to enhance alpha generation. By closely aligning with its underlying index, FNX serves as an effective tool for investors seeking exposure to the mid-cap segment of the U.S. equity market, providing a comprehensive view of performance within this dynamic market capitalization range.
The correlation aspect of the First Trust Mid Cap Core AlphaDEX Fund (Ticker: FNX) is an important factor for investors looking to understand its performance. FNX seeks to replicate the performance of the Nasdaq US 600 Mid Cap Index using the AlphaDEX selection methodology, aiming for positive alpha relative to traditional indices. Given its mid-cap focus, FNX's correlation with the broader U.S. market can be moderate, offering investors a potential source of diversification. However, its specific correlation with various sectors and assets can vary, making it a valuable tool for portfolio managers seeking to fine-tune their exposure.
The First Trust Mid Cap Core AlphaDEX Fund (FNX) primarily invests in mid-cap U.S. companies, aiming to replicate the performance of the Nasdaq US 600 Mid Cap IndexTM using an AlphaDEX® selection methodology. The Index Provider, Nasdaq, Inc., designed the index to identify stocks that have the potential to generate positive alpha, or risk-adjusted returns, relative to traditional indices. FNX focuses on stocks within the mid-cap segment of the market, offering investors a diversified exposure to this sector. However, it's important to note that a concentration in mid-cap stocks may carry additional risks associated with this market segment's volatility and performance.
The First Trust Mid Cap Core AlphaDEX Fund (FNX) is primarily focused on providing exposure to mid-cap U.S. companies through its investment strategy. This ETF aims to replicate the performance of the Nasdaq US 600 Mid Cap IndexTM, which is designed to select stocks from the Base Index that have the potential to generate positive alpha, indicating risk-adjusted returns. FNX employs the AlphaDEX® selection methodology to classify stocks into either value or growth categories, and it allocates higher weights to stocks in the higher-scoring quintiles. This approach offers investors exposure to a diversified portfolio of mid-cap companies with the goal of outperforming traditional indices on a risk-adjusted basis.
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