(FXR) First Trust - Ratings and Ratios

First Trust Industrials/Producer Durables AlphaDEX® Fund (FXR) offers a targeted approach for investors seeking exposure to the industrials and producer durables sectors. As an ETF listed on NYSE ARCA, FXR strategically invests at least 90% of its net assets in securities from its index, leveraging the AlphaDEX® methodology to potentially outperform traditional passive indices.

The AlphaDEX® process is designed to enhance returns by selecting stocks based on factors like price momentum, revenue growth, and other fundamental criteria. This methodology is applied to the Russell 1000® Index, focusing on industrials and producer durables, which include industries like aerospace, construction, and industrial machinery, aiming to identify companies with high growth potential.

FXR employs a modified equal-dollar weighted approach, differing from traditional market cap weighting by giving equal weight to each stock in its index. This approach can lead to a more diversified portfolio and potentially reduce concentration risk. With an AUM of over $2 billion, FXR provides liquidity and scale, making it suitable for institutional and retail investors alike.

For investors and fund managers, FXR presents an opportunity to gain systematic exposure to industrials and producer durables through a rules-based, transparent approach. Its particularly appealing to those seeking a sector-specific strategy with the potential for alpha generation, aligning with the broader economic cycle trends in these industries.