Core Insights - The First Trust Large Cap Growth AlphaDEX ETF (FTC) is designed to provide broad exposure to the Style Box - Large Cap Growth category and utilizes a smart beta strategy [1][5] - The ETF has amassed assets over $1.22 billion and seeks to match the performance of the Nasdaq AlphaDEX Large Cap Growth Index [5] - FTC has a 12-month trailing dividend yield of 0.34% and an annual expense ratio of 0.58% [6] Fund Characteristics - FTC employs the AlphaDEX stock selection methodology, which selects stocks based on fundamental characteristics rather than market capitalization [5] - The ETF has a significant allocation in the Information Technology sector, accounting for approximately 23.2% of the portfolio, followed by Industrials and Financials [7] - The top 10 holdings represent about 10.66% of FTC's total assets, with Palantir Technologies Inc. (PLTR) being the largest individual holding at 1.2% [8] Performance Metrics - As of September 2, 2025, FTC has returned approximately 13.46% year-to-date and 23.5% over the past year [10] - The fund has traded between $116.97 and $158.18 in the past 52 weeks, with a beta of 1.11 and a standard deviation of 18.39% over the trailing three-year period, indicating medium risk [10] Alternatives - Other ETFs in the large-cap growth space include Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having an expense ratio of 0.04% and QQQ at 0.20% [11] - Investors seeking lower-cost options may consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth [12]

Core Viewpoint - The First Trust Large Cap Growth AlphaDEX ETF (FTC) is a passively managed ETF designed to provide broad exposure to the Large Cap Growth segment of the US equity market, with assets exceeding $1.20 billion [1] Group 1: ETF Overview - FTC was launched on May 8, 2007, and is sponsored by First Trust Advisors [1] - The ETF targets companies with a market capitalization above $10 billion, which are considered more stable and less volatile compared to mid and small cap companies [2] Group 2: Growth Stocks Characteristics - Growth stocks typically exhibit higher than average sales and earnings growth rates, but they also come with higher valuations and volatility [3] - While growth stocks may outperform value stocks in strong bull markets, value stocks have historically provided better returns across various market conditions [3] Group 3: Costs and Performance - The annual operating expenses for FTC are 0.58%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.34% [4] - FTC aims to match the performance of the Nasdaq AlphaDEX Large Cap Growth Index, having gained approximately 11.49% year-to-date and 22.59% over the past year as of August 22, 2025 [7] Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 21.2% of the portfolio, followed by Information Technology and Industrials [5] - Robinhood Markets, Inc. (class A) accounts for approximately 1.77% of total assets, with the top 10 holdings representing about 12.52% of total assets under management [6] Group 5: Risk and Alternatives - FTC has a beta of 1.11 and a standard deviation of 18.47% over the trailing three-year period, indicating it is a medium risk option [8] - The ETF holds a Zacks ETF Rank of 1 (Strong Buy), making it a strong choice for investors interested in the Large Cap Growth segment [10] - Alternatives include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), which have significantly larger asset bases and lower expense ratios [11] Group 6: Bottom Line - Passively managed ETFs like FTC are increasingly popular due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investors [12]