Is First Trust Large Cap Value AlphaDEX ETF (FTA) a Strong ETF Right Now?

Core Viewpoint - The First Trust Large Cap Value AlphaDEX ETF (FTA) is a smart beta ETF that aims to provide broad exposure to the large-cap value segment of the market, utilizing a unique stock selection methodology to potentially outperform traditional market cap weighted indexes [1][5]. Fund Overview - Launched on May 8, 2007, FTA has accumulated assets exceeding $1.14 billion, positioning it as an average-sized ETF within its category [1][5]. - The fund is managed by First Trust Advisors and seeks to match the performance of the Nasdaq AlphaDEX Large Cap Value Index, which employs an enhanced stock selection methodology [5]. Cost Structure - FTA has an annual operating expense ratio of 0.58%, making it one of the more expensive options in the large-cap value ETF space [6]. - The ETF offers a 12-month trailing dividend yield of 1.95% [6]. Sector Exposure and Holdings - The ETF's largest sector allocation is in Financials, comprising approximately 20.1% of the portfolio, followed by Healthcare and Industrials [7]. - D.R. Horton, Inc. (DHI) represents about 1.08% of the fund's total assets, with the top 10 holdings accounting for around 10% of total assets under management [8]. Performance Metrics - As of September 11, 2025, FTA has increased by approximately 8.92% year-to-date and 10.04% over the past year [10]. - The ETF has traded within a range of $67.12 to $83.49 over the last 52 weeks, with a beta of 0.92 and a standard deviation of 16.57% over the trailing three-year period, indicating medium risk [10]. Alternatives - While FTA is a viable option for investors looking to outperform the large-cap value segment, alternatives such as Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV) are available, with SCHD having $71.6 billion in assets and VTV at $145.21 billion [11][12]. - SCHD has a lower expense ratio of 0.06%, and VTV charges 0.04%, making them attractive options for cost-conscious investors [12].