Description

The First Trust AlphaDEX U.S. Industrials Sector Index ETF (the "First Trust ETF") endeavors to mirror the performance of the StrataQuant Industrials Index ("Index"), net of all operational expenses, to the greatest extent achievable. Its investment approach involves either directly acquiring and holding the Index's constituent securities in their precise proportions or investing in financial instruments designed to replicate the Index's returns. The StrataQuant Industrials Index is formulated by applying the AlphaDEX methodology to the Russell 1000 Index—a key benchmark representing large and mid-capitalization U.S. equities. The specific securities comprising the StrataQuant Industrials Index are then chosen from qualifying stocks within the Industrials/Producer Durables Sector that have been subjected to this methodology.