First Trust Large Cap Value AlphaDEX Fund (FTA) Covered Calls

The First Trust Large Cap Growth AlphaDEX Fund (FTA) is an exchange-traded fund that employs the AlphaDEX methodology to select and weight growth-oriented stocks from the S&P 500. By screening for both growth and value factors, the fund aims to outperform traditional market-cap-weighted growth indices. It focuses on companies that demonstrate high price appreciation potential through a quantitative, rules-based selection process.

You can sell covered calls on First Trust Large Cap Value AlphaDEX Fund to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for FTA (prices last updated Fri 4:16 PM ET):

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Core Business and Products

The First Trust Large Cap Growth AlphaDEX Fund (FTA) utilizes a multi-factor quantitative strategy known as AlphaDEX to identify growth stocks within the U.S. large-cap universe. Unlike standard growth ETFs that rely primarily on market capitalization, FTA’s methodology screens stocks based on growth factors—such as three-, six-, and twelve-month price appreciation, sales growth, and earnings growth—while also filtering for value metrics to avoid overextended stocks.

The resulting portfolio is style-weighted, meaning the stocks that score highest on these growth and value metrics receive higher allocations. This systematic approach is designed to produce an "enhanced" growth profile that is less concentrated in the absolute largest market-cap names than a standard benchmark like the S&P 500 Growth Index. The fund’s quarterly rebalancing helps maintain its factor exposure, ensuring the portfolio stays aligned with the current market leadership.

Competitive Landscape

FTA operates in a crowded marketplace for large-cap growth exposure. Its primary competitors are broad-market, market-cap-weighted giants like the iShares S&P 500 Growth ETF and the Vanguard Growth ETF. While those funds offer low-cost, pure-beta exposure, FTA competes by offering a factor-tilt that may provide different risk-adjusted returns depending on the market cycle.

Other factor-based competitors include the Schwab U.S. Large-Cap Growth ETF and specialized tactical funds like the First Trust NASDAQ-100-Technology Sector Index Fund. Performance for FTA is driven by a concentrated list of growth leaders with highly liquid options markets, such as Apple Inc., Microsoft Corporation, and Amazon.com, Inc..

Strategic Outlook and Innovation

The strategic outlook for FTA revolves around its ability to outperform during periods where growth and quality factors are in favor. By balancing growth screens with value-oriented filters, the fund attempts to mitigate the "valuation bubble" risk that often plagues pure growth indices. This makes it a potential "all-weather" growth tool for investors who are wary of the extreme volatility sometimes found in high-multiple, high-beta growth stocks.

Innovation in this space is driven by the refinement of quantitative screening parameters. As data availability improves, index providers are evolving how they calculate "momentum" and "growth" to include more forward-looking metrics, such as earnings revisions and analyst sentiment. By maintaining a disciplined, rules-based methodology, FTA seeks to provide consistent alpha over long-term holding periods while providing a transparent, liquid alternative to active management.

Want more examples? FSZ Covered Calls | FTAG Covered Calls