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Is First Trust Large Cap Core AlphaDEX ETF (FEX) a Strong ETF Right Now?
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Launched on 05/08/2007, the First Trust Large Cap Core AlphaDEX ETF (FEX - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by First Trust Advisors, FEX has amassed assets over $1.49 billion, making it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, FEX seeks to match the performance of the Nasdaq AlphaDEX Large Cap Core Index.
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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.00%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FEX, it has heaviest allocation in the Industrials sector --about 17.5% of the portfolio --while Financials and Information Technology round out the top three.
Taking into account individual holdings, Cf Industries Holdings, Inc. (CF) accounts for about 0.72% of the fund's total assets, followed by Seagate Technology Holdings Plc (STX) and Vertiv Holdings Co (class A) (VRT).
The top 10 holdings account for about 6.45% of total assets under management.
Performance and Risk
The ETF has added roughly 10.17% and it's up approximately 29.8% so far this year and in the past one year (as of 05/08/2026), respectively. FEX has traded between $102.24 and $132.55 during this last 52-week period.
The fund has a beta of 0.95 and standard deviation of 14.49% for the trailing three-year period, which makes FEX a medium risk choice in this particular space. With about 377 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Large Cap Core AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $813.95 billion in assets, Vanguard 500 Index Fund ETF Shares has $943.28 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
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.
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Is First Trust Large Cap Core AlphaDEX ETF (FEX) a Strong ETF Right Now?
Launched on 05/08/2007, the First Trust Large Cap Core AlphaDEX ETF (FEX - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by First Trust Advisors, FEX has amassed assets over $1.49 billion, making it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, FEX seeks to match the performance of the Nasdaq AlphaDEX Large Cap Core Index.
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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.00%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FEX, it has heaviest allocation in the Industrials sector --about 17.5% of the portfolio --while Financials and Information Technology round out the top three.
Taking into account individual holdings, Cf Industries Holdings, Inc. (CF) accounts for about 0.72% of the fund's total assets, followed by Seagate Technology Holdings Plc (STX) and Vertiv Holdings Co (class A) (VRT).
The top 10 holdings account for about 6.45% of total assets under management.
Performance and Risk
The ETF has added roughly 10.17% and it's up approximately 29.8% so far this year and in the past one year (as of 05/08/2026), respectively. FEX has traded between $102.24 and $132.55 during this last 52-week period.
The fund has a beta of 0.95 and standard deviation of 14.49% for the trailing three-year period, which makes FEX a medium risk choice in this particular space. With about 377 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Large Cap Core AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $813.95 billion in assets, Vanguard 500 Index Fund ETF Shares has $943.28 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
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.