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Is First Trust Large Cap Value AlphaDEX ETF (FTA) a Strong ETF Right Now?
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A smart beta exchange traded fund, the First Trust Large Cap Value AlphaDEX ETF (FTA - Free Report) debuted on 05/08/2007, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Because the fund has amassed over $1.32 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. FTA is managed by First Trust Advisors. 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
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 FTA are 0.58%, which makes it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.84%.
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 in the Financials sector - about 23.9% of the portfolio. Energy and Utilities round out the top three.
When you look at individual holdings, Cognizant Technology Solutions Corporation (CTSH) accounts for about 1.36% of the fund's total assets, followed by Accenture Plc (ACN) and Super Micro Computer, Inc. (SMCI).
Its top 10 holdings account for approximately 11.04% of FTA's total assets under management.
Performance and Risk
The ETF has gained about 12.05% and is up about 16.47% so far this year and in the past one year (as of 10/01/2026), respectively. FTA has traded between $81.12 and $104.22 during this last 52-week period.
The ETF has a beta of 0.79 and standard deviation of 13.89% for the trailing three-year period, making it a medium risk choice in the space. With about 188 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 Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $107.81 billion in assets, Vanguard Morningstar Value ETF has $185.19 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?
A smart beta exchange traded fund, the First Trust Large Cap Value AlphaDEX ETF (FTA - Free Report) debuted on 05/08/2007, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Because the fund has amassed over $1.32 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. FTA is managed by First Trust Advisors. 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
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 FTA are 0.58%, which makes it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.84%.
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 in the Financials sector - about 23.9% of the portfolio. Energy and Utilities round out the top three.
When you look at individual holdings, Cognizant Technology Solutions Corporation (CTSH) accounts for about 1.36% of the fund's total assets, followed by Accenture Plc (ACN) and Super Micro Computer, Inc. (SMCI).
Its top 10 holdings account for approximately 11.04% of FTA's total assets under management.
Performance and Risk
The ETF has gained about 12.05% and is up about 16.47% so far this year and in the past one year (as of 10/01/2026), respectively. FTA has traded between $81.12 and $104.22 during this last 52-week period.
The ETF has a beta of 0.79 and standard deviation of 13.89% for the trailing three-year period, making it a medium risk choice in the space. With about 188 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 Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $107.81 billion in assets, Vanguard Morningstar Value ETF has $185.19 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.