(FXO) First Trust Financials - Ratings and Ratios

The First Trust Financials AlphaDEX® Fund (FXO) is an ETF designed to outperform traditional financial sector indices by leveraging the AlphaDEX® selection methodology. This approach aims to identify and select stocks from the Russell 1000® Index within the financial services sector that have the potential to generate positive alpha. The fund invests at least 90% of its net assets in the securities that make up its underlying index, which is a modified equal-dollar weighted index. This structure allows for a more objective and rules-based approach to stock selection compared to traditional market-cap weighted indices.

As an ETF, FXO offers investors exposure to a diversified basket of financial services stocks, including banks, insurance companies, and other financial institutions. The fund is domiciled in the United States and trades on the NYSE ARCA under the ticker symbol FXO. With an AUM of approximately $2.255 billion, FXO is a sizable fund within the financial sector ETF category. While it does not focus on traditional valuation metrics like P/E or P/B, its AlphaDEX® methodology is designed to deliver alpha through a systematic and transparent process. For investors and fund managers looking for a rules-based, non-traditional approach to financial sector exposure, FXO provides a unique alternative to passive market-cap weighted financial ETFs.