Large-Cap ETF (FEX) Hits New 52-Week High

For investors seeking momentum, First Trust Large Cap Core AlphaDEX Fund (ASX:FEX) is probably on radar. The fund just hit a 52-week high and is up 29.8% from its 52-week low price of $48.89 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

FEX in Focus

This ETF provides exposure to the large-cap segment of the broader market and employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index. It has a well-diversified portfolio with key holdings in financials, industrials, consumer cyclicals and information technology. The fund charges 61 bps in annual fees (read: all the Large Cap Blend ETFs here).

Why the Move?

The broader U.S. market has been an area to watch lately given the new record highs logged by the major bourses. The dual tailwinds of renewed trade optimism and stronger-than-expected corporate earnings are driving the stock market. Additionally, the Fed slashed interest rates once again by 25 basis points last month, representing the third rate cut for the year. Lower interest rates have made borrowings cheaper, providing a boost to both investment in new projects and repayment of a higher-rate debt. A spate of better-than-expected data has added to the strength.

More Gains Ahead?

Currently, FEX has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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First Trust Large Cap Core AlphaDEX Fund (FEX): ETF Research Reports

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Zacks Investment Research