(FXH) First Trust Health Care - Ratings and Ratios

The First Trust Health Care AlphaDEX Fund, listed on the NYSE ARCA under the ticker symbol FXH, is designed to provide investors with a unique approach to tapping into the health care sector. By investing at least 90% of its net assets in the securities that comprise its underlying index, the fund aims to deliver a portfolio that closely tracks the performance of this specific segment of the market. The index itself is a modified equal-dollar weighted index, which means that the securities within it are selected and weighted in a way that seeks to optimize their potential for generating alpha, or returns that exceed those of a benchmark index.

The AlphaDEX selection methodology is a key component of this fund's strategy, as it uses a rules-based approach to identify and select stocks from the Russell 1000 Index that are likely to outperform their peers in the health care sector. This methodology takes into account a range of fundamental and quantitative factors, including price momentum, revenue growth, and other metrics that can help to identify companies with strong growth potential. By focusing on the health care sector, the fund provides investors with a way to target a specific area of the market that is known for its potential for long-term growth and innovation.

From a structural perspective, the First Trust Health Care AlphaDEX Fund is an exchange-traded fund (ETF) that is domiciled in the United States and has an International Securities Identification Number (ISIN) of US33734X1431. As an ETF, it offers investors the benefits of transparency, liquidity, and flexibility, as its holdings are disclosed daily and it can be traded throughout the day on an exchange. The fund's website, which can be found at http://www.ftportfolios.com/, provides additional information on its investment objectives, strategies, and performance, as well as other details that may be of interest to potential investors.

In terms of its categorization, the First Trust Health Care AlphaDEX Fund falls under the health care category of ETFs, which means that it is designed to provide investors with a way to gain exposure to the health care sector in a single investment. This can be attractive to investors who are looking to diversify their portfolios and tap into the potential growth opportunities that exist within this sector, which includes companies involved in pharmaceuticals, biotechnology, medical devices, and other related areas. By using a rules-based approach to select its holdings, the fund seeks to provide a disciplined and systematic way to invest in the health care sector, which can help to reduce the risks associated with individual stock selection.