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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?

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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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