First Trust Utilities AlphaDEX® Fund company info

What does First Trust Utilities AlphaDEX® Fund do?
First Trust Utilities AlphaDEX® Fund (NYSEARCA:FXU) operates as an exchange-traded fund (ETF) focused on the utilities sector. It aims to replicate the performance of the StrataQuant® Utilities Index, which is comprised of US utilities stocks selected based on growth factors, value factors, and momentum factors. By employing the AlphaDEX® selection methodology, the fund seeks to invest in companies within the utilities industry, including those involved in electricity, water, and gas. The primary objective of the fund is to offer investors exposure to the utilities sector through a portfolio that delivers potential for capital appreciation and dividend income. Through its targeted approach, First Trust Utilities AlphaDEX® Fund strives for superior investment returns by rigorously selecting stocks that exhibit the desired attributes, making it a specialized investment vehicle for those looking to gain exposure to the utilities sector.
First Trust Utilities AlphaDEX® Fund company media
Company Snapshot

Is First Trust Utilities AlphaDEX® Fund a public or private company?

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Ownership
Public

How many people does First Trust Utilities AlphaDEX® Fund employ?

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Employees
1,082

What sector is First Trust Utilities AlphaDEX® Fund in?

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Sector
ETF

Where is the head office for First Trust Utilities AlphaDEX® Fund?

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Head Office
Wheaton, United States

What year was First Trust Utilities AlphaDEX® Fund founded?

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Year Founded
2007
What does First Trust Utilities AlphaDEX® Fund specialise in?
/Exchange Traded Fund /Sector Investing /AlphaDEX Methodology /Equity Investment /Utilities Sector /Stock Market Exposure

What are the products and/or services of First Trust Utilities AlphaDEX® Fund?

Overview of First Trust Utilities AlphaDEX® Fund offerings
Focus on U.S. Utilities Sector: FXU invests in a basket of companies within the utilities sector of the U.S. stock market. This sector encompasses companies that provide essential services like electricity, water, natural gas, and waste disposal.
AlphaDEX® Selection Methodology: FXU uses a quantitative selection process called AlphaDEX®. This approach goes beyond traditional market capitalization weighting and aims to identify and select utilities stocks with the potential to outperform the broader U.S. utilities market based on a combination of growth and value factors.
Tiered Equal-Weighting: FXU applies a tiered equal-weighting strategy. The holdings are grouped into tiers based on market capitalization, and then each company within a tier is weighted equally. This approach aims to offer exposure to both large and mid-sized utilities companies while reducing the influence of any single company on the overall fund performance compared to traditional market-cap weighted utilities ETFs.
Potential for Steady Income and Capital Appreciation: Utility companies typically generate consistent cash flow from their customer base and may offer regular dividend payouts. FXU could provide investors with a potential source of income alongside the chance for capital appreciation if the underlying companies' stock prices increase. However, the growth potential in the utilities sector may be more moderate compared to some other sectors due to their focus on providing essential services with regulated returns.
Potential for Lower Volatility: The utilities sector is generally known for its relatively lower volatility compared to the broader market. This can be due to the essential nature of the services they provide and the stability of their customer base. FXU's investment strategy might offer some potential for reduced volatility compared to the entire U.S. stock market.