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With the Growth Factor Gaining, Go with First Trust s FTC

February 4, 2021 Cyclical and value stocks are generating some buzz, but the growth factor is still in fashion. With that in mind, the The $1.08 billion FTC, which turns 14 years old in May, tracks the NASDAQ AlphaDEX Large Cap Growth Index, a unique avenue to growth equities. The index is built “by ranking the eligible stocks from the NASDAQ US 500 Large Cap Growth Index on growth factors including 3-, 6- and 12- month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors. A stock must have data for all growth and/or value factors to receive a rank for that style,” according to First Trust.

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