FXG

📎 Investment Objective

The First Trust Consumer Staples AlphaDEX Fund (FXG) seeks to provide investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an index called the StrataQuant Consumer Staples Index.

✨ Key Features

• Focuses on consumer staples stocks that are selected using a quantitative methodology to identify potential outperformers
• Diversified portfolio across various consumer staples sub-sectors such as food, beverages, household products, and personal care
• Quarterly rebalancing and reconstitution to maintain exposure to stocks with the highest potential for outperformance

⚠️ Primary Risks

• Concentration risk as the fund is focused solely on the consumer staples sector
• Potential for underperformance compared to the broader consumer staples market if the stock selection methodology does not identify the best-performing stocks
• Liquidity risk for smaller or less-traded holdings in the portfolio
• Market risk as the fund's performance is tied to the overall performance of the consumer staples sector

👤 Best For

This ETF may be suitable for investors seeking exposure to the consumer staples sector with the potential for outperformance through a quantitative stock selection process. It may be appropriate as a core holding or satellite position in a diversified portfolio. Investors should have a medium to long-term investment horizon and be comfortable with the risks associated with a sector-specific fund.