Core Insights - The First Trust Energy AlphaDEX ETF (FXN) is a smart beta ETF that provides broad exposure to the Energy sector, having debuted on May 8, 2007 [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, but smart beta strategies aim to outperform through stock selection based on fundamental characteristics [2][3] - FXN is sponsored by First Trust Advisors and has assets totaling approximately $278.76 million, positioning it as an average-sized ETF in the Energy category [5] Fund Structure and Strategy - FXN seeks to match the performance of the StrataQuant Energy Index, which is a modified equal-dollar weighted index designed to identify stocks from the Russell 1000 Index that may generate positive alpha [6] - The fund has an annual operating expense ratio of 0.61% and a 12-month trailing dividend yield of 2.92%, which is competitive within its peer group [7] Sector Exposure and Holdings - The fund has a significant allocation to the Energy sector, representing 93.5% of its portfolio [8] - First Solar, Inc. (FSLR) is the largest holding at approximately 5.8%, with the top 10 holdings accounting for about 41.17% of total assets [9] Performance Metrics - Year-to-date, FXN has experienced a loss of approximately -3.71%, and over the last 12 months, it is down about -14.12% as of July 18, 2025 [11] - The fund has a beta of 0.90 and a standard deviation of 28.29% over the trailing three-year period, indicating a higher risk profile compared to peers [11] Alternatives in the Market - For investors seeking to outperform the Energy ETFs segment, alternatives such as the Vanguard Energy ETF (VDE) and the Energy Select Sector SPDR ETF (XLE) are available, with VDE having $7.15 billion in assets and XLE at $27.57 billion [13] - VDE and XLE have lower expense ratios of 0.09% and 0.08% respectively, making them more attractive options for cost-conscious investors [13]