First Trust Technology AlphaDEX Fund (NYSE: FXL) is a passively managed exchange-traded fund (ETF) designed to track the performance of technology companies in the U.S. stock market. Launched in 2007, FXL aims to provide exposure to a diversified range of tech sectors while utilizing a unique selection methodology.
The fund employs the AlphaDEX methodology, which seeks to improve upon traditional market-capitalization weighted indexing by selecting stocks based on various fundamental factors. This method includes evaluating growth, value, and momentum characteristics to identify companies that exhibit strong potential for future performance. By relying on these quantitative measures, the ETF aims to enhance returns compared to standard benchmarks.
FXL typically includes a mix of large- and mid-cap tech stocks, providing investors with exposure to leading names in areas such as cloud computing, cybersecurity, semiconductors, and artificial intelligence. Some of its notable holdings often include major players like Apple, Microsoft, and Nvidia, reflecting the continuing innovation and growth within the technology sector. Due to its focus on tech, FXL tends to be more volatile and can experience significant price fluctuations, influenced by broader market conditions and trends in tech adoption.
The fund has garnered attention for its performance potential, particularly during bullish technology market cycles. As of October 2023, it continues to be an attractive option for investors looking to capitalize on the ongoing digital transformation and technological advancements across various industries. Overall, First Trust Technology AlphaDEX offers a strategic vehicle for gaining targeted exposure to the dynamic tech sector while implementing a methodology that emphasizes growth potential.
As of October 2023, First Trust Technology AlphaDEX Fund (NYSE: FXL) presents an appealing option for investors seeking exposure to the technology sector. This exchange-traded fund (ETF) employs a unique selection methodology that aims to outperform traditional market-cap weighted indices by using a rules-based approach to select stocks based on growth and value metrics.
The technology sector has shown resilience despite global economic uncertainties and inflationary pressures. Investment in this sector continues to gain traction due to rapid innovation, digital transformation initiatives, and increased reliance on technology solutions across industries. With companies focusing on artificial intelligence, cloud computing, and cybersecurity, the growth potential remains significant.
FXL's inclusion of companies that demonstrate strong prices relative to their earnings and sales growth means that it tends to favor businesses that might be undervalued or poised for rapid growth. Notably, the fund is heavily weighted in large-cap stocks, which tend to be less volatile than small-cap stocks, creating a balanced risk profile for investors.
However, potential investors should be aware of market risks, including interest rate fluctuations and potential regulatory scrutiny within the tech industry. Valuations in the sector can be sensitive to changes in macroeconomic conditions. Therefore, it's vital to maintain a diversified portfolio to mitigate risks associated with sector-specific downturns.
In summary, while FXL offers compelling opportunities in the technology sector through a tactical investment strategy, prospective investors should consider their risk tolerance and investment horizon. Monitoring economic indicators and sector trends will be crucial in assessing the fund's performance. A long-term perspective, coupled with an understanding of potential volatility, could yield favorable outcomes for those willing to engage with the technology market through FXL.
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The investment seeks investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an equity index called the StrataQuant Technology Index. The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks that comprise the index. The index is a modified equal-dollar weighted index designed by IDI to objectively identify and select stocks from the Russell 1000 Index in the technology sector that may generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX selection methodology.
Quote | First Trust Technology AlphaDEX (NYSE:FXL)
Last: | $158.39 |
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Change Percent: | -0.19% |
Open: | $157.07 |
Close: | $158.39 |
High: | $158.7 |
Low: | $157.07 |
Volume: | 85,780 |
Last Trade Date Time: | 07/17/2025 03:23:17 pm |
News | First Trust Technology AlphaDEX (NYSE:FXL)
2025-07-15 02:45:00 ET As the second quarter earnings season kicks into gear, Wall Street analysts are forecasting modest earnings growth of 4.8% for companies in the S&P 500. According to FactSet, this would be the lowest YoY growth rate since Q4 2023 (4.0%). 1 ... Read t...
2025-07-08 19:25:00 ET While the big tech companies for the most part don’t report until the 3rd or 4th week in July, looking over prior quarters' EPS and revenue growth rates for tech, here’s what the progression looked like in terms of where the quarter started, and how ...
Message Board Posts | First Trust Technology AlphaDEX (NYSE:FXL)
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MWN AI FAQ **
The First Trust Technology AlphaDEX ETF (NYSE: FXL) primarily holds stocks such as Nvidia and Apple, focusing on growth-oriented companies, which tend to outperform broader tech indices like the Nasdaq-100 due to their emphasis on value and fundamental metrics.
Historically, the First Trust Technology AlphaDEX FXL has shown relative resilience during market downturns, influenced by its selection of growth-oriented tech stocks and the underlying strength of the technology sector, which often rebounds quicker than others.
As of October 2023, the expense ratio of the First Trust Technology AlphaDEX Fund (FXL) is 0.70%, which is relatively competitive compared to many other technology-focused ETFs, typically ranging between 0.30% to 0.80%.
The First Trust Technology AlphaDEX (NYSE: FXL) employs a stock selection approach that screens for growth and value metrics within the tech sector, benefiting investors by potentially enhancing returns through dynamic portfolio construction while minimizing risks associated with traditional indexing.
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