First Trust Multi Cap Value AlphaDEX Fund

Frequently Asked Questions About FAB

What does FAB invest in?

FAB holds a broad value-focused portfolio of stocks from the Nasdaq US Select Index Family. The fund uses a quantitative methodology to select and weight securities in three different size segments. In particular, FAB uses three value factors (P/B, ROA, and P/FCF) to rank companies. Once the fund has selected those firms best positioned for value, it employs a tiered weighting strategy that assigns weights of 50% to large caps, 30% to midcaps and 20% to small-caps. FAB makes huge sector bets and carries a small tilt. The index is reconstituted and rebalanced quarterly. Note: On April 8, 2016, the fund switched underlying indexes from the old Defined index to the current Nasdaq version. The index universe may differ slightly but the factors and methodology are the same.

What is the expense ratio of FAB?

First Trust Multi Cap Value AlphaDEX Fund (FAB) charges an expense ratio of 0.66%. This is the annual fee deducted from fund assets to cover management and operations.

How big is FAB?

First Trust Multi Cap Value AlphaDEX Fund (FAB) manages $160.5M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is FAB actively managed or an index fund?

FAB's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.

When was FAB launched?

First Trust Multi Cap Value AlphaDEX Fund (FAB) launched in May 2007 and is managed by First Trust.

How has FAB performed?

FAB's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.