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First Trust Technology AlphaDEX® Fund (FXL)
Investment Objective/Strategy - The First Trust Technology 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 StrataQuant® Technology Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The StrataQuant® Technology Index is an "enhanced" index developed, maintained and sponsored by ICE Data Indices, LLC or its affiliates ("IDI") which employs the AlphaDEX® stock selection methodology to select stocks from the Russell 1000® Index.
  • IDI constructs the StrataQuant® Technology Index by ranking the stocks which are members of the Russell 1000® 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 Russell has classified solely as growth or value, receive their score using the above growth or value factors respectively.
  • Stocks which Russell allocates between both growth and value receive their best score between the growth and value factors.
  • IDI then ranks those stocks contained in the technology sector according to their score. The bottom 25% is eliminated and the top 75% is selected for the StrataQuant® Technology 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.
Fund Overview
Fund TypeTechnology
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.63%
Net Expense Ratio*0.63%
* As of 11/30/2018
Expenses are capped contractually at 0.70% per year, at least until November 30, 2019.
Current Fund Data (as of 9/13/2019)
Closing NAV1$66.31
Closing Market Price2$66.30
Bid/Ask Midpoint$66.32
Bid/Ask Premium0.01%
Total Net Assets$2,264,886,608
Outstanding Shares34,155,000
Daily Volume223,739
Average 30-Day Daily Volume178,763
Closing Market Price 52-Week High/Low$71.30 / $48.15
Closing NAV 52-Week High/Low$71.31 / $48.17
Number of Holdings103
Fund Characteristics (as of 8/30/2019)3
Maximum Market Cap.$1,052,618
Median Market Cap.$12,049
Minimum Market Cap.$1,383
Price/Cash Flow13.64
Top Holdings (as of 9/13/2019)
Holding Percent
Micron Technology, Inc. 2.22%
Switch, Inc. (Class A) 2.05%
NXP Semiconductors N.V. 1.92%
Match Group, Inc. (Class A) 1.89%
Intel Corporation 1.86%
Arrow Electronics, Inc. 1.82%
Coupa Software Incorporated 1.76%
Alteryx, Inc. (Class A) 1.74%
CDW Corporation 1.71%
Avalara, Inc. 1.70%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Bid/Ask Midpoint vs. NAV (as of 6/30/2019)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
6/30/2019 38 0 0 0
3/31/2019 50 0 0 0
12/31/2018 25 4 0 0
9/30/2018 47 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
6/30/2019 25 0 0 0
3/31/2019 11 0 0 0
12/31/2018 31 3 0 0
9/30/2018 16 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.

Top Industry Exposure (as of 9/13/2019)
Software 30.55%
Semiconductors & Semiconductor Equipment 22.09%
IT Services 14.42%
Electronic Equipment, Instruments & Components 11.69%
Communications Equipment 5.08%
Technology Hardware, Storage & Peripherals 4.66%
Interactive Media & Services 4.23%
Entertainment 3.21%
Aerospace & Defense 1.49%
Professional Services 1.44%
Month End Performance (as of 8/30/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 8.29% 27.36% 6.08% 23.56% 15.45% 16.51% 10.62%
After Tax Held 8.27% 27.24% 5.87% 23.28% 15.16% 16.32% 10.48%
After Tax Sold 4.91% 16.20% 3.58% 18.60% 12.30% 14.00% 8.87%
Market Price 8.24% 27.10% 6.00% 23.54% 15.42% 16.50% 10.62%
Index Performance **
StrataQuant® Technology Index 8.54% 28.00% 6.49% 24.11% 16.06% 17.28% 11.42%
Russell 1000® Technology Index 9.79% 26.23% 3.25% 21.41% 16.18% 16.56% N/A
Russell 1000® Index 6.69% 18.48% 2.49% 12.57% 9.85% 13.49% 7.84%
S&P 500 Information Technology Index 11.10% 29.41% 6.62% 22.92% 17.69% 17.45% 12.60%
Quarter End Performance (as of 6/28/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 4.18% 27.00% 18.93% 27.00% 16.06% 18.04% 10.75%
After Tax Held 4.16% 26.88% 18.69% 26.71% 15.78% 17.84% 10.61%
After Tax Sold 2.47% 15.98% 11.19% 21.45% 12.82% 15.40% 8.97%
Market Price 4.15% 26.79% 18.79% 26.97% 16.06% 18.02% 10.75%
Index Performance **
StrataQuant® Technology Index 4.35% 27.41% 19.29% 27.53% 16.66% 18.81% 11.54%
Russell 1000® Technology Index 4.20% 24.23% 11.38% 24.87% 17.09% 17.66% N/A
Russell 1000® Index 4.25% 18.84% 10.02% 14.15% 10.45% 14.77% 7.99%
S&P 500 Information Technology Index 6.06% 27.13% 14.34% 26.20% 18.53% 18.57% 12.62%
3-Year Statistics (as of 8/30/2019)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FXL 18.31% -0.14 1.05 1.17 0.90
S&P 500 Information Technology Index 15.68% --- 1.00 1.31 1.00
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.

*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.

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 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. 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.

**Performance information for the StrataQuant® Technology Index is for illustrative purposes only and does not represent actual fund performance.
Indexes do 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.

Russell 1000® Technology Index - The Index is an unmanaged index which includes the stocks in the technology sector of the Russell 1000® Index.

Russell 1000® Index - The Index is an unmanaged index used to measure the large-cap U.S. equity universe.

S&P 500 Information Technology Index - The Index is an unmanaged index which includes the stocks in the information technology sector of the S&P 500 Index.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 All market capitalization numbers are in USD$ Millions.
4 Inception Date is 5/8/2007

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

The fund's return may not match the return of the StrataQuant® Technology Index.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. 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, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

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. There can be no assurance that the fund's investment objective will be achieved.

The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Certain technology companies may be smaller and less experienced companies, with limited product lines, markets or financial resources.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

The StrataQuant® Technology Index is a trademark of ICE Data Indices, LLC or its affiliates ("IDI") and has been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by IDI and IDI makes no representation or warranty regarding the advisability of investing in the fund or as to the result to be obtained by any person from use of the index in connection with the trading of the fund.

Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Frank Russell Company does not promote, sponsor or endorse the content of this communication.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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