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Is First Trust Large Cap Value AlphaDEX ETF (FTA) a Strong ETF Right Now?
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The First Trust Large Cap Value AlphaDEX ETF (FTA - Free Report) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
FTA is managed by First Trust Advisors, and this fund has amassed over $1.29 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. FTA seeks to match the performance of the Nasdaq AlphaDEX Large Cap Value Index before fees and expenses.
The NASDAQ AlphaDEX Large Cap Value Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Value Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for FTA are 0.58%, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.69%.
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.
This ETF has heaviest allocation in the Financials sector - about 19.7% of the portfolio. Energy and Utilities round out the top three.
When you look at individual holdings, Cf Industries Holdings, Inc. (CF) accounts for about 1.42% of the fund's total assets, followed by Occidental Petroleum Corporation (OXY) and Conocophillips (COP).
Its top 10 holdings account for approximately 11.78% of FTA's total assets under management.
Performance and Risk
So far this year, FTA has added about 9.69%, and is up roughly 26.92% in the last one year (as of 05/22/2026). During this past 52-week period, the fund has traded between $74.87 and $95.37.
The ETF has a beta of 0.81 and standard deviation of 14.01% for the trailing three-year period, making it a medium risk choice in the space. With about 189 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Large Cap Value AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $92.99 billion in assets, Vanguard Value Index Fund ETF Shares has $175.13 billion. SCHD has an expense ratio of 0.06% and VTV 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 Value
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 Value AlphaDEX ETF (FTA) a Strong ETF Right Now?
The First Trust Large Cap Value AlphaDEX ETF (FTA - Free Report) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
FTA is managed by First Trust Advisors, and this fund has amassed over $1.29 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. FTA seeks to match the performance of the Nasdaq AlphaDEX Large Cap Value Index before fees and expenses.
The NASDAQ AlphaDEX Large Cap Value Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Value Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for FTA are 0.58%, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.69%.
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.
This ETF has heaviest allocation in the Financials sector - about 19.7% of the portfolio. Energy and Utilities round out the top three.
When you look at individual holdings, Cf Industries Holdings, Inc. (CF) accounts for about 1.42% of the fund's total assets, followed by Occidental Petroleum Corporation (OXY) and Conocophillips (COP).
Its top 10 holdings account for approximately 11.78% of FTA's total assets under management.
Performance and Risk
So far this year, FTA has added about 9.69%, and is up roughly 26.92% in the last one year (as of 05/22/2026). During this past 52-week period, the fund has traded between $74.87 and $95.37.
The ETF has a beta of 0.81 and standard deviation of 14.01% for the trailing three-year period, making it a medium risk choice in the space. With about 189 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Large Cap Value AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $92.99 billion in assets, Vanguard Value Index Fund ETF Shares has $175.13 billion. SCHD has an expense ratio of 0.06% and VTV 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 Value
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.