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| Investment Objective/Strategy -
The First Trust Large Cap Value Opportunities AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Defined Large Cap Value Opportunities Index. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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- The Defined Large Cap Value Opportunities Index is an “enhanced” index created and administered by Standard & Poor’s which employs the AlphaDEX® stock selection methodology to select stocks from the S&P 500 Value Index.
- Standard & Poor’s constructs the Defined Large Cap Value Opportunities Index by ranking the stocks from the S&P 500 Value Index against all the stocks in the S&P 500 Index on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets.
- Stocks which are classified solely as value, based on S&P style designations, receive their score from the above value factors.
- Stocks which S&P allocates between both growth and value receive their best score between the above growth and value factors. Only those that receive a higher value score are eligible for inclusion in the Defined Large Cap Value Opportunities Index.
- The remaining stocks are then ranked according to their score. The bottom 25% is eliminated and the top 75% is selected for the Defined Large Cap Value Opportunities Index.
- The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
- The index is reconstituted and rebalanced quarterly.
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Fund Overview
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| Ticker |
FTA |
| Fund Type |
Large Cap Value |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33735J101 |
| Intraday NAV |
FTAIV |
| Fiscal Year-End |
07/31 |
| Exchange |
NYSE Arca |
| Inception |
5/8/2007 |
| Inception Price |
$30.00 |
| Inception NAV |
$30.00 |
Gross Expense Ratio
(1/31/2010) |
0.92% |
| Net Expense Ratio |
0.70% |
| Rebalance Frequency |
QUARTERLY |
| Marginable |
Yes |
| Options |
No |
| Short Sell |
Yes |
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until May 15, 2011.
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| Bid/Ask Midpoint and NAV History (Since Inception) |
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Past performance is not indicative of future results.
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Current Fund Data (as of 7/29/2010)
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| Closing Share Price |
$23.22 |
| Bid/Ask Midpoint |
$23.20 |
| Closing NAV |
$23.21 |
| Bid/Ask Discount |
0.05% |
| Total Net Assets |
$49,907,293 |
| Common Shares Outstanding |
2,150,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1767 |
| Daily Volume |
5,348 |
| Average 30-Day Daily Volume |
25,468 |
| Closing Share Price 52-Week High/Low |
$25.09 / $18.80 |
| Closing NAV 52-Week High/Low |
$25.13 / $18.80 |
| Number of Stocks |
202 |
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| Consumer Discretionary |
14.17% |
| Consumer Staples |
6.97% |
| Energy |
8.89% |
| Financials |
12.53% |
| Health Care |
12.08% |
| Industrials |
9.31% |
| Information Technology |
8.58% |
| Materials |
2.81% |
| Telecommunication Services |
3.37% |
| Utilities |
21.29% |
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| Top 10 Holdings (as of 7/30/2010) |
| Holdings |
Percent (%) |
| Morgan Stanley |
0.91 |
| Carnival Corporation |
0.90 |
| King Pharmaceuticals, Inc. |
0.90 |
| NiSource Inc. |
0.89 |
| ConocoPhillips |
0.88 |
| Coventry Health Care, Inc. |
0.88 |
| Chevron Corporation |
0.88 |
| Leucadia National Corporation |
0.88 |
| Comcast Corporation (Class A) |
0.87 |
| Qep Resources Inc-W/I |
0.87 |
| Fund Characteristics (as of 6/30/2010) 3 |
| Median Market Cap. |
$10,125 |
| Maximum Market Cap. |
$268,118 |
| Minimum Market Cap. |
$1,646 |
| Price/Earnings |
11.48 |
| Price/Book |
1.37 |
| Price/Cash Flow |
5.35 |
| Price/Sales |
0.65 |
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| Number of Days Bid/Ask Midpoint Above NAV |
| Quarter Ended |
0-49
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
>=200
Basis Points |
| 6/30/2010 |
45 |
0 |
0 |
0 |
| 3/31/2010 |
41 |
0 |
0 |
0 |
| 12/31/2009 |
36 |
0 |
0 |
0 |
| 9/30/2009 |
35 |
0 |
0 |
0 |
| Number of Days Bid/Ask Midpoint Below NAV |
| Quarter Ended |
0-49
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
>=200
Basis Points |
| 6/30/2010 |
18 |
0 |
0 |
0 |
| 3/31/2010 |
20 |
0 |
0 |
0 |
| 12/31/2009 |
28 |
0 |
0 |
0 |
| 9/30/2009 |
29 |
0 |
0 |
0 |
The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.
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| Month End Performance (as of 6/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception2 |
| Fund Performance * |
| NAV |
-9.04% |
-2.89% |
23.26% |
-8.23% |
N/A |
N/A |
-7.93% |
| After Tax Held |
-9.30% |
-3.16% |
22.61% |
-8.87% |
N/A |
N/A |
-8.54% |
| After Tax Sold |
-5.88% |
-1.88% |
15.12% |
-7.27% |
N/A |
N/A |
-7.00% |
| Market Price |
-9.12% |
-2.85% |
23.20% |
-8.28% |
N/A |
N/A |
-7.94% |
| Index Performance ** |
| Defined Large Cap Value Opportunities Index |
-8.89% |
-2.53% |
24.21% |
-7.45% |
N/A |
N/A |
-7.16% |
| S&P 500 Value Index |
-11.57% |
-5.30% |
16.40% |
-12.82% |
N/A |
N/A |
-12.33% |
| S&P 500® Index |
-11.43% |
-6.65% |
14.43% |
-9.81% |
N/A |
N/A |
-9.38% |
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| Quarter End Performance (as of 6/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception2 |
| Fund Performance * |
| NAV |
-9.04% |
-2.89% |
23.26% |
-8.23% |
N/A |
N/A |
-7.93% |
| After Tax Held |
-9.30% |
-3.16% |
22.61% |
-8.87% |
N/A |
N/A |
-8.54% |
| After Tax Sold |
-5.88% |
-1.88% |
15.12% |
-7.27% |
N/A |
N/A |
-7.00% |
| Market Price |
-9.12% |
-2.85% |
23.20% |
-8.28% |
N/A |
N/A |
-7.94% |
| Index Performance ** |
| Defined Large Cap Value Opportunities Index |
-8.89% |
-2.53% |
24.21% |
-7.45% |
N/A |
N/A |
-7.16% |
| S&P 500 Value Index |
-11.57% |
-5.30% |
16.40% |
-12.82% |
N/A |
N/A |
-12.33% |
| S&P 500® Index |
-11.43% |
-6.65% |
14.43% |
-9.81% |
N/A |
N/A |
-9.38% |
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3-Year Statistics (as of 6/30/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| First Trust Large Cap Value Opportunities AlphaDEX® Fund |
27.18% |
5.56 |
1.21 |
-0.29 |
0.93 |
| S&P 500 Value Index |
22.93% |
-1.99 |
1.08 |
-0.61 |
0.98 |
| S&P 500® Index |
20.73% |
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-0.53 |
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*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost. You can obtain performance information which is current through the most recent month-end by visiting ftportfolios.com.
After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
The gross expense ratio for this fund is 0.92%.
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until May 15, 2011.
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**Past performance is not a guarantee of future results. Performance information for the Defined Large Cap Value Opportunities Index is for illustrative purposes only and does not represent the performance of any actual investment or fund. No representation is being made that any investment will achieve performance similar to that shown. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. All index returns assume that dividends are reinvested when they are received.
Standard Deviation is a measure of price variability (risk).
Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.
Beta is a
measure of price variability relative to the market.
Sharpe Ratio is a measure of excess reward per unit of volatility.
Correlation is a measure of the similarity of performance.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.
The S&P 500 Value Index contains those securities with value characteristics from the S&P 500 Index.
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| Footnotes
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| 1 |
Most recent distribution paid or declared through today's date. Subject to change in the future. |
| 2 |
Inception Date is 5/8/2007 |
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All market capitalization numbers are in US$ Millions. |
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You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or contact First Trust Portfolios, L.P. at 1-800-621-1675 to request a prospectus, which contains this and other information about the fund. Read it carefully before you invest.
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Risk Considerations:
The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value.
The fund's return may not match the return of the Defined Large Cap Value Opportunities Index. The fund may not be fully invested at times. Securities held by the fund will generally not be bought or sold in response to market fluctuations and the securities may be issued by companies concentrated in a particular industry.
Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units.
The Defined Large Cap Value Opportunities Index is the exclusive property of Standard and Poor's, a division of the McGraw-Hill Companies, Inc. ("S&P"). First Trust Portfolios L.P. has contacted with S&P to create, calculate and maintain the Index. STANDARD & POOR'S and S&P are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's does not make any representation regarding the advisability of investing in the fund.
"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P.
A patent application with respect to the AlphaDEX® stock selection methodology is pending at the United States Patent and Trademark Office.
The Fund is classified as "non-diversified." A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the Fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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