(FXO) First Trust Financials - Ratings and Ratios

The First Trust Financials AlphaDEX Fund, listed on the NYSE ARCA under the ticker symbol FXO, is designed to track the performance of the AlphaDEX Financials Index. This index utilizes a unique selection methodology to identify and select stocks from the Russell 1000 Index that operate within the financial services sector. By applying this methodology, the fund aims to generate positive alpha relative to traditional passive-style indices, thereby providing investors with the potential for enhanced returns. The fund's investment strategy involves allocating at least 90% of its net assets, including investment borrowings, to the securities that comprise the index.

The AlphaDEX selection methodology is a rules-based approach that seeks to objectively evaluate and select stocks based on certain criteria, such as price appreciation, sales growth, and other key metrics. This approach is designed to identify stocks with the potential for outperformance, allowing the fund to capitalize on opportunities within the financial services sector. The fund's modified equal-dollar weighted index ensures that each stock in the portfolio has an equal opportunity to contribute to the overall performance, rather than being weighted solely by market capitalization. This approach can help to reduce the dominance of larger stocks and provide a more balanced portfolio.

As an exchange-traded fund (ETF), the First Trust Financials AlphaDEX Fund offers investors the benefits of diversification, liquidity, and transparency. The fund is listed on the NYSE ARCA, providing investors with easy access to the financial services sector. With its domicile in the United States and ISIN code US33734X1357, the fund is subject to US regulatory requirements and is classified as an ETF within the financial category. For more information, investors can visit the company's website at http://www.ftportfolios.com/.