Is the First Trust Large Cap Growth AlphaDEX ETF (FTC) Currently a Top ETF Choice?

Overview of the First Trust Large Cap Growth AlphaDEX ETF (FTC)

Launched on May 8, 2007, the First Trust Large Cap Growth AlphaDEX ETF (FTC) is a smart beta exchange-traded fund that provides investors with access to the large-cap growth segment of the market.

Understanding Smart Beta ETFs

Traditionally, most ETFs have been constructed to mirror market capitalization-weighted indexes, which aim to reflect the performance of the overall market or specific sectors.

These cap-weighted indexes are popular for their low costs, ease of use, and transparency, making them a solid choice for those who trust in market efficiency.

However, some investors prefer smart beta funds, which follow alternative, non-cap-weighted strategies. These funds appeal to those seeking to outperform the market by targeting stocks with favorable characteristics.

Smart beta indexes select stocks based on certain fundamental or quantitative factors, aiming to enhance risk-adjusted returns. Strategies in this space range from simple equal-weighting to more complex approaches based on fundamentals or volatility. Not all smart beta methods, however, have consistently delivered superior results.

Fund Details and Index Methodology

With assets exceeding $1.2 billion, FTC ranks as an average-sized ETF within the large-cap growth category. Managed by First Trust Advisors, the fund seeks to replicate the performance of the Nasdaq AlphaDEX Large Cap Growth Index before fees and expenses.

This index uses the AlphaDEX methodology to select stocks from the NASDAQ US 500 Large Cap Growth Index, aiming to enhance returns through a rules-based selection process.

Fees and Expenses

Expense ratios are a key consideration when choosing an ETF, as lower costs can lead to better long-term performance if other factors are equal.

FTC has an annual operating expense of 0.58%, which is comparable to similar funds in its category.

The fund's trailing 12-month dividend yield stands at 0.20%.

Sector Allocation and Major Holdings

Before investing, it's crucial to review an ETF's holdings, even though these funds offer diversification and reduce the risk associated with individual stocks. Most ETFs, including FTC, provide daily transparency of their portfolios.

FTC's largest sector exposure is Industrials, making up approximately 27.7% of its assets. Information Technology and Consumer Discretionary sectors are also significant components.

Among individual holdings, Seagate Technology Holdings Plc (STX) represents about 1.34% of the fund, followed by Ftai Aviation Ltd. (FTAI) and Lam Research Corporation (LRCX).

The top ten holdings collectively account for roughly 11.18% of the fund's total assets.

Performance and Risk Profile

As of March 11, 2026, FTC has delivered a return of approximately 0.13% year-to-date and 24.47% over the past year. Over the last 52 weeks, the fund's price has ranged from $116.97 to $166.21.

FTC exhibits a beta of 1.13 and a three-year standard deviation of 17.77%, positioning it as a moderate-risk option in the large-cap growth space. With around 188 holdings, the fund offers broad diversification to help mitigate company-specific risks.

Other ETF Alternatives

FTC is a strong contender for investors aiming to outperform the large-cap growth segment. However, there are alternative ETFs to consider.

• Vanguard Growth Index Fund ETF Shares (VUG) tracks the CRSP U.S. Large Cap Growth Index and manages $197.16 billion in assets, with an expense ratio of 0.03%.
• Invesco QQQ (QQQ) follows the NASDAQ-100 Index, holding $391.86 billion in assets and charging a 0.18% expense ratio.

For those seeking lower costs and reduced risk, traditional market cap-weighted ETFs that aim to match the large-cap growth segment may be preferable.

Conclusion

To explore more about FTC and other ETFs, use screening tools to find funds that align with your investment goals and stay informed with the latest ETF news and analysis.