(FTA) First Trust Large Cap Value - Ratings and Ratios

The First Trust Large Cap Value AlphaDEX Fund (FTA) is an actively managed ETF that employs a rules-based investment strategy to identify large-cap value stocks with high potential for alpha generation. By tracking the NASDAQ US500 Large Cap Value AlphaDEX Index, the fund targets securities that exhibit strong value characteristics and are poised to outperform traditional market indices on a risk-adjusted basis.

The AlphaDEX selection methodology used by the funds index is designed to systematically evaluate and rank stocks based on multiple value and growth factors, aiming to create a portfolio that balances risk and potential return. This approach enables the fund to capitalize on market inefficiencies and exploit opportunities that may arise from mispricing in the large-cap value segment.

As of the latest available data, the funds assets under management (AUM) stand at approximately $1.083 billion, indicating a moderate level of investor interest. The funds investment objective is to provide long-term capital appreciation by investing at least 90% of its net assets in the securities comprising the index.

From a technical analysis perspective, the funds price action suggests a potential bullish trend. The current price of $77.72 is above both the 20-day and 50-day simple moving averages (SMA20: $76.46, SMA50: $74.23), indicating a short-term uptrend. Furthermore, the 200-day simple moving average (SMA200: $76.91) is below the current price, suggesting a longer-term bullish bias. The average true range (ATR: 0.90) implies a moderate level of volatility, corresponding to a 1.16% daily price movement.

Combining technical and fundamental insights, a forecast for FTA can be derived. Given the funds focus on large-cap value stocks and its AlphaDEX selection methodology, it is likely to benefit from a rotation into value stocks. If the current uptrend continues, the fund may test its 52-week high of $82.59. Conversely, a decline below the SMA50 at $74.23 could signal a potential downtrend. Based on the current technical and fundamental landscape, a moderate overweight position in FTA may be warranted, with a target price of $80.00 in the near term.