The First Trust Health Care AlphaDEX Fund (FXH) is managed by First Trust Advisors L.P., a well-established investment management firm. The fund was created to provide investors with exposure to the health care sector through a unique indexing approach. FXH aims to replicate the performance of the StrataQuant® Health Care Index, which is designed to identify and select health care stocks from the Russell 1000® Index that have the potential to generate positive alpha relative to traditional passive-style indices. With a focus on the health care sector, FXH offers investors a targeted investment option within the broader equity market.
The First Trust Health Care AlphaDEX Fund (FXH) focuses on replicating the performance of the custom enhanced index known as the StrataQuant® Health Care Index. While the primary objective is not centered around dividends, FXH's dividend distribution is influenced by the constituent companies within the healthcare sector. The ETF aims to provide investors with exposure to healthcare stocks that have the potential to generate positive alpha compared to traditional passive-style indices using the AlphaDEX® selection methodology. Dividend eligibility within FXH is subject to the policies and performances of the healthcare companies included in its portfolio. Investors seeking both capital appreciation and potential dividend returns may find FXH to be a suitable investment option.
Tracking the health care sector with precision, the First Trust Health Care AlphaDEX Fund (FXH) primarily invests in common stocks that make up the modified equal-dollar weighted StrataQuant® Health Care Index. Developed and maintained by ICE Data Indices, LLC, this index employs the AlphaDEX® selection methodology to identify and select stocks from the Russell 1000® Index within the health care sector. FXH strives to replicate the performance of this unique index, aiming to generate positive alpha relative to traditional passive-style health care indices. The fund offers exposure to the health care industry, with its portfolio periodically rebalanced to align with the index's composition, making it an appealing option for investors seeking targeted health care sector exposure.
The correlation aspect of the First Trust Health Care AlphaDEX Fund (FXH) primarily revolves around its relationship with the health care sector and its underlying index. As an ETF designed to replicate the performance of the StrataQuant® Health Care AlphaDEX Index, FXH tends to exhibit a strong correlation with the health care sector. The AlphaDEX selection methodology employed by the index provider aims to identify stocks within the health care sector that have the potential to generate positive alpha relative to traditional passive-style indices. This correlation makes FXH a valuable tool for investors seeking exposure to health care stocks with the potential for outperformance.
The First Trust Health Care AlphaDEX Fund (FXH) focuses on the healthcare sector, aiming to replicate the performance of its custom-enhanced index, which identifies and selects stocks from the Russell 1000® Index within the healthcare sector using the AlphaDEX® selection methodology. This approach seeks to generate positive alpha relative to traditional passive-style indices by emphasizing both growth and value factors. FXH is concentrated in the healthcare industry, composed of 83 securities as of October 31, 2022, offering investors exposure to a wide range of healthcare companies with varying market capitalizations. However, it's important to note that this concentration may also expose the fund to sector-specific risks.
The First Trust Health Care AlphaDEX Fund (FXH) primarily focuses on the healthcare sector within the U.S. equity market. FXH seeks to outperform traditional passive-style indices by utilizing the AlphaDEX® selection methodology. This methodology involves ranking stocks in the healthcare sector based on both growth and value factors, with higher-ranked stocks receiving greater weight in the Index. As a result, FXH offers investors exposure to healthcare companies that may generate positive alpha relative to traditional benchmarks, providing a unique approach to investing in this vital sector. For detailed information on FXH's holdings, overlap, correlations, and more, you can explore ETF Insider's web app for in-depth analysis of this and other US ETFs.
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