Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the First Trust Large Cap Core AlphaDEX ETF (FEX Quick QuoteFEX - Free Report) , a passively managed exchange traded fund launched on May 8, 2007.

The fund is sponsored by First Trust Advisors. It has amassed assets over $1.35 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.58%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.14%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 16.4% of the portfolio. Industrials and Information Technology round out the top three.

Looking at individual holdings, Rocket Lab Corporation (RKLB) accounts for about 0.64% of total assets, followed by Vertiv Holdings Co (VRT) and Micron Technology, Inc. (MU).

The top 10 holdings account for about 5.07% of total assets under management.

Performance and Risk

FEX seeks to match the performance of the Nasdaq AlphaDEX Large Cap Core Index before fees and expenses. The NASDAQ AlphaDEX Large Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index.

The ETF has added about 11.44% so far this year and was up about 6.21% in the last one year (as of 11/14/2025). In the past 52-week period, it has traded between $90.17 and $118.65.

The ETF has a beta of 1.00 and standard deviation of 15.14% for the trailing three-year period, making it a medium risk choice in the space. With about 376 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust Large Cap Core AlphaDEX ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FEX is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) track a similar index. While iShares Core S&P 500 ETF has $712.08 billion in assets, Vanguard S&P 500 ETF has $788.98 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.