2024-06-03 11:54:54 ET
Summary
- First Trust Technology AlphaDEX® Fund ETF takes a unique approach to sector exposure by screening for both growth and value metrics.
- The fund has underperformed compared to market-cap weighted indices in the technology sector.
- Despite underperformance, the fund's unique construction process and equal-weighted approach may appeal to investors looking for less risk over time.
There are plenty of ways to get sector exposure beyond just market-cap weighting a basket of stocks that move off similar risk factors. Instead, you can do what investors used to do back in the day - actually do some stock picking. The problem with that? No methodology has been able to do stock picking particularly well for a prolonged period of time. But that doesn’t stop ETF issuers from trying....
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For further details see:
FXL: An Underperformer, But That's Okay