First Trust is close to launching new exchange traded funds (ETFs) based on AlphaDEX, an index strategy where stocks need to meet certain criteria in order to remain in the index. The value index looks at price/book return on assets and price/cash flow. The growth uses a 3, 6, 12 month price change momentum, 1-year sales growth and price/sales. Because changes are made quarterly, these could be classified as actively managed index ETFs. The jury is still out on whether the strategy will outperform a passive index in the same asset class. Here’s the new ETFs list:
- First Trust AMEX-Traded AlphaDEX
- First Trust Large Cap Core AlphaDEX
- First Trust Mid Cap Core AlphaDEX
- First Trust Small Cap Core AlphaDEX
- First Trust Large Cap Value Opportunities AlphaDEX
- First Trust Large Cap Growth Opportunities AlphaDEX
- First Trust Multi Cap Value AlphaDEX
- First Trust Multi Cap Growth AlphaDEX
- First Trust Consumer Discretionary AlphaDEX
- First Trust Consumer Staples AlphaDEX
- First Trust Energy AlphaDEX
- First Trust Financials AlphaDEX
- First Trust Health Care AlphaDEX
- First Trust Industrials AlphaDEX
- First Trust Materials AlphaDEX
- First Trust Technology AlphaDEX
- First Trust Utilities AlphaDEX
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.