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

This large-cap ETF hits a new 52-week high. Are more gains in store for this ETF?

This story originally appeared on Zacks

For investors seeking momentum, First Trust Large Cap Core AlphaDEX Fund FEX is probably on radar. The fund just hit a 52-week high, and is up 45% from its 52-week low price of $62.20 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:

- Zacks

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 information technology, financials, healthcare, industrials and consumer cyclicals. The ETF charges investors 59 basis points a year in fees (see: all the Large Cap ETF Blend here).

Why the Move?

The large-cap corner of the broader market has been an area to watch lately, given the solid start to Q3 earnings. Total earnings for the 41 S&P 500 members that have reported so far are up 40.4% from the same period last year on 13.4% higher revenues, with 85.4% beating EPS estimates and 70.7% beating revenue estimates. The EPS beat percentage is tracking in line with the 5-year average while the revenue beat percentage is on the weaker side. The solid trend has set the stage for the large-cap ETFs to continue hitting new highs as Q3 earnings unfold.

More Gains Ahead?

Currently, FEX has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, 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 ETF (FEX): ETF Research Reports


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