First Trust Files For “First Trust Small Cap Growth AlphaDex Fund ETF”

First Trust has filed paperwork with the SEC for a “First Trust Small Cap Growth AlphaDex Fund ETF.” The First Trust Small Cap Growth AlphaDEX(R) Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Defined Small Cap Growth Index.

PRINCIPAL INVESTMENT STRATEGIES

The Fund will normally invest at least 90% of its net assets in common stocks that comprise the Index. The Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Index. First Trust seeks a correlation of 0.95 or better (before fees and expenses) between the Fund’s performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. First Trust will regularly monitor the Fund’s tracking accuracy and will seek to maintain an appropriate correlation.

The Index is in the “Defined Index Series,” a family of custom enhanced indices developed, maintained and sponsored by Standard & Poor’s Financial Services LLC (“S&P” or the “Index Provider”). The Index is a modified equal-dollar weighted index designed by S&P to objectively identify and select stocks from the S&P Small Cap Index that may generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX(R) screening methodology. Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark. As of ___________, _____, the Index was comprised of ____stocks. The Index is rebalanced and reconstituted as of the last business day of each calendar quarter. Changes to the Index will be effective at the open of trading on the sixth business day of the following
month.

For the complete filing click: HERE

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