XLF - FXO: A Curated Financials Sector Fund

2024-06-30 05:09:13 ET

Summary

• The financial sector has underperformed since the Great Financial Crisis, but may have promise due to value outperforming growth in the future.
• First Trust Financials AlphaDEX® Fund is a quantitatively oriented fund with equal-weighted stocks selected based on growth and value factors.
• FXO includes a diverse range of companies in the financial sector, with strong valuation metrics and potential for diversification benefits, but may be impacted by regulatory changes and economic downturns.

Let's face it - Financials have never been the same since the Great Financial Crisis. Banks became more like utilities, and the group broadly hasn't had stellar performance relative to hotter sectors like Tech. Having said that, I do think the sector has promise largely because I believe value will outperform growth in the years ahead, and Financials are a major component of that. If you agree with that idea, you may want to consider the First Trust Financials AlphaDEX® Fund ( FXO )....

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