QGRO - FTC: AlphaDEX Strategy Does Not Work For Large-Cap Growth ETFs

February, 10 2025 06:27 AM American Century STOXX U.S. Quality Growth

2025-02-10 06:27:44 ET

Summary

FTC tracks a well-diversified basket of 187 large-cap securities selected for their strong growth characteristics and weak value features. Its Index reconstitutes quarterly, and FTC's ER is 0.58%.
Its AlphaDEX methodology aims to enhance returns by adding secondary screens covering momentum and short-term sales growth, but the approach also filters out high-quality stocks.
The result is one of the lowest-quality large-cap growth ETFs on the market. FTC's selections are also highly levered, with an average interest coverage ratio 9x lower than its peers.
As a result, I've assigned FTC a "sell" rating, with a fundamental analysis comparing it with COWG, RPG, QQEW, and QGRO in the article below.

Company Name:	American Century STOXX U.S. Quality Growth
Stock Symbol:	QGRO
Market:	NYSE