Over the past few years, the U.S. equity market has been dominated by a relatively small number of mega-cap stocks, whose concentration in broad market benchmarks has reached unprecedented levels. Against this backdrop, we think it’s important to remember that, if history is any guide, the best performers of the next decade may look substantially different from the last decade as newer market entrants disrupt large incumbent stocks. The “Magnificent 7” themselves illustrate this point, as only three of these stocks (Apple, Microsoft, and Alphabet) were among the top ten holdings of the S&P 500® Index at the end of 2014. Accordingly, we believe investors should consider overlooked growth opportunities that may be lacking from most broad market benchmarks. In our view, one efficient, scalable strategy to gain exposure to such stocks is the First Trust US Equity Opportunities ETF (FPX), which we highlight.

To continue reading, click here.