First Trust Materials AlphaDEX Fund Steckbrief

The First Trust Materials AlphaDEX Fund is an exchange-traded fund (ETF) that invests in the materials sector of the global economy. The fund aims to provide investors with exposure to companies involved in the production and distribution of raw materials, such as metals, chemicals, and construction materials. It operates by tracking the performance of the StrataQuant Materials Index, which is a modified equal-weighted index that uses an AlphaDEX selection methodology to screen for the top-performing materials stocks. The ETF was first introduced in May 2011 and has since grown in popularity as a tool for diversifying investment portfolios. The fund is managed by the First Trust Advisors, an investment management company based in Illinois, USA. The firm is renowned for its cutting-edge use of quantitative algorithms and data-driven strategies, which are employed to identify the most promising companies within a sector. The First Trust Materials AlphaDEX Fund is structured as a passive ETF, which means it operates on autopilot, without the need for active management. The ETF is designed to track the performance of its underlying index with minimal human intervention. This approach provides investors with a low-cost means of gaining exposure to the materials sector, while also benefiting from the expertise of the fund's experienced quantitative investment team. The materials sector is a crucial part of the global economy, and it includes companies that are involved in the production and distribution of a wide variety of raw materials. These raw materials are essential inputs for a range of industries, including construction, manufacturing, and technology. As a result, materials stocks are among the most widely held and actively traded securities on the world's stock exchanges. The First Trust Materials AlphaDEX Fund holds a diversified portfolio of materials stocks, which includes companies such as DowDupont Inc., LyondellBasell Industries N.V., and Ecolab Inc. The fund's investment objective is to provide long-term capital appreciation by investing in materials stocks with superior market performance metrics, such as growth potential, profitability, and shareholder value. One of the key features of the First Trust Materials AlphaDEX Fund is its use of the AlphaDEX selection methodology. This proprietary selection process involves screening for stocks based on a range of fundamental and technical criteria, such as sales growth, dividend yield, and volatility. The AlphaDEX methodology is designed to identify stocks with the greatest potential for outperformance relative to their peers and the broader market. Overall, the First Trust Materials AlphaDEX Fund is an excellent choice for investors who are seeking exposure to the materials sector. The ETF provides low-cost access to a diversified portfolio of high-performance materials stocks, and its use of the AlphaDEX selection methodology is an innovative approach that can potentially enhance returns. The fund is a passive investment tool that aims to deliver long-term capital appreciation by investing in the world's leading materials companies.